Zappos Complaint

CLASS ACTION COMPLAINT
1
UNI1LD S1A1LS DIS1kIC1 CCUk1
ICk 1nL WLS1LkN DIS1kIC1 CI kLN1UCk
LCUISVILLL DIVISICN

1PL8LSA u. S1LvLnS, on behalf of
herself and all oLhers slmllarly slLuaLed,
lalnLlff,
v.
AMAZCn.CCM, lnC. d/b/a ZACS.CCM,
uefendanL.

Case No.:

CLASS AC1ICN CCMLAIN1

DLMAND ICk IUk 1kIAL

lalnLlff, 1heresa u. SLevens (lalnLlff"), on behalf of herself and all oLhers slmllarly
slLuaLed, complalns of Lhe acLlons of uefendanL, Amazon.com, lnc. d/b/a Zappos.com
(uefendanL"), and respecLfully alleges Lhe followlng:
NA1UkL CI 1nL CASL
1. 1hls ls a consumer class acLlon lawsulL broughL by lalnLlff, lndlvldually and
on behalf of over 24 mllllon slmllarly slLuaLed persons (l.e., Lhe Class Members), whose
Zappos.com personal cusLomer accounL lnformaLlon (CAl"), lncludlng names,
accounL numbers, passwords, e-mall addresses, bllllng and shlpplng addresses, phone numbers
and Lhe lasL four dlglLs of credlL cards used Lo make purchases, was sLolen by hackers
who galned access Lo Zappos.com's lnLernal neLwork Lhrough Lhe company's unproLecLed
servers locaLed ln wesLern kenLucky.
2. uefendanL was enLrusLed wlLh, among oLher Lhlngs, safeguardlng lalnLlff's and
Class Members' CAl. ln vlolaLlon of Lhe lalr CredlL 8eporLlng AcL, 1S u.S.C. 1681 et. sep.
3:12cv-32 M
Case 3:12-cv-00032-JHM-JDM Document 1 Filed 01/16/12 Page 1 of 17 PageID #: 1


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(lC8A"), uefendanL falled Lo adopL and malnLaln adequaLe procedures Lo proLecL such
lnformaLlon and llmlL lLs dlssemlnaLlon only for Lhe permlsslble purposes seL forLh ln lC8A.
As a dlrecL and/or proxlmaLe resulL of uefendanL's wlllful, reckless and/or grossly negllgenL
vlolaLlons of lC8A, an unauLhorlzed Lhlrd parLy obLalned lalnLlff's and Class Members' CAl
for no permlsslble purpose under lC8A.
3. uefendanL's wrongful acLlons and/or lnacLlon also consLlLuLe common law
lnvaslon of prlvacy by Lhe publlc dlsclosure of prlvaLe facLs and common law negllgence.
4. lalnLlff, on behalf of herself and Lhe Class Members, seeks (l) acLual damages,
economlc damages, menLal angulsh damages, sLaLuLory damages and/or nomlnal damages, (ll)
exemplary damages, (lll) ln[uncLlve rellef, and (lv) aLLorneys' fees, llLlgaLlon expenses and cosLs.
IUkISDIC1ICN AND VLNUL
S. 1hls CourL has sub[ecL maLLer [urlsdlcLlon over lalnLlff's lC8A clalms pursuanL Lo
(l) 28 u.S.C. 1331 (federal quesLlon) and (ll) 28 1332(d) (CAlA) because (a) Lhere are 100 or
more Class Members, (b) aL leasL one Class Member ls a clLlzen of a sLaLe LhaL ls dlverse from
uefendanL's clLlzenshlp, and (c) Lhe maLLer ln conLroversy exceeds $S,000,000 uSu excluslve of
lnLeresL and cosLs. 1hls CourL also has sub[ecL maLLer [urlsdlcLlon over lalnLlff's sLaLe law
clalms pursuanL Lo 28 u.S.C. 1367. 1hls CourL has personal [urlsdlcLlon over uefendanL
because aL all relevanL Llmes, uefendanL conducLed (and conLlnues Lo conducL) subsLanLlal
buslness ln Lhe WesLern ulsLrlcL of kenLucky.
6. Cn lnformaLlon and bellef, Lhe unproLecLed Zappos.com server Lhrough whlch
Lhe daLa Lhleves galned access Lo Lhe Zappos.com neLwork and sLole lalnLlff's and Class
Members' CAl ls locaLed ln Shepherdsvllle, kenLucky. Accordlngly, venue ls proper ln Lhe


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WesLern ulsLrlcL of kenLucky pursuanL Lo 28 u.S.C. 1391(b) and (c) because a subsLanLlal parL,
lf noL all, of Lhe evenLs glvlng rlse Lo Lhls acLlon occurred ln Lhe WesLern ulsLrlcL of kenLucky and
uefendanL resldes, ls locaLed, can be found, and/or conducLs subsLanLlal buslness, ln Lhe
WesLern ulsLrlcL of kenLucky.
Ak1ILS
7. lalnLlff, 1heresa u. SLevens, ls a resldenL of Lhe ClLy of 8eaumonL, SLaLe of
1exas. Cn !anuary 16, 2012, lalnLlff recelved an e-mall from Zappos.com noLlfylng lalnLlff
LhaL her CAl had been sLolen and/or compromlsed as parL of Lhe Zappos.com daLa breach.
8. uefendanL, Amazon.com, lnc., ls a uelaware corporaLlon wlLh lLs prlnclpal place
of buslness ln Lhe ClLy of SeaLLle, SLaLe of WashlngLon. lounded ln 1999, Zappos.com ls an
onllne shoe and apparel reLaller currenLly based ln Lhe ClLy of Penderson, SLaLe of nevada.
Zappos.com was acqulred by Amazon.com, lnc. ln 2009 and, on lnformaLlon and bellef,
operaLes as an unlncorporaLed dlvlslon of Amazon.com, lnc. Amazon.com, lnc.'s corporaLe
headquarLers ls locaLed aL 410 1erry Avenue norLh, SeaLLle, WashlngLon 98109-S210.
Amazon.com, lnc. d/b/a Zappos.com may be served wlLh Summons and a copy of Lhls Class
AcLlon ComplalnL and !ury uemand by servlng lLs deslgnaLed reglsLered agenL, whlch ls
CSC-Lawyers lncorporaLlng Servlce Company, 421 W. Maln SL., lrankforL, kenLucky 40601.
8ACkGkCUND IAC1S
9. Cn !anuary 16, 2012, lalnLlff and over 24 mllllon Class Members recelved an
e-mall from Zappos.com noLlfylng Lhem LhaL Lhelr CAl had been sLolen and/or compromlsed.
10. Accordlng Lo 1ony Psleh, Lhe Zappos.com CLC, lalnLlff's and Class Members'
CAl lncludlng, lotet ollo, Lhelr names, accounL numbers, passwords, e-mall addresses, bllllng


4
and shlpplng addresses, phone numbers, and Lhe lasL four dlglLs of Lhe credlL cards used Lo
make purchases, was sLolen by hackers who galned access Lo Zappos.com's lnLernal neLwork
Lhrough lLs unproLecLed servers locaLed ln, on lnformaLlon and bellef, Shepherdsvllle, kenLucky.
11. As a resulL of uefendanL's fallure Lo properly secure lLs servers and safeguard
lalnLlff's and Class Members' CAl, lalnLlff's and Class Members' prlvacy has been lnvaded.
lalnLlff and Class Members wlll now be requlred Lo Lake Lhe Llme Lo change Lhe passwords on
Lhelr Zappos.com accounLs (as recommended by Zappos.com), change Lhe passwords on any
oLher web slLe where [lalnLlff and Class Members] use Lhe same or a slmllar password" (as
furLher recommended by Zappos.com), and change oLher elemenLs of Lhelr compromlsed CAl.
Also, lalnLlff and Class Members now face a greaLer rlsk of ldenLlLy LhefL-lncludlng, buL noL
llmlLed Lo, ldenLlLy LhefL from phlshlng" and pharmlng."
12. ldenLlLy LhefL occurs when a person's personally ldenLlfylng lnformaLlon,
such as Lhe person's name, e-mall address, bllllng and shlpplng addresses, phone number
and credlL card lnformaLlon ls used wlLhouL hls or her permlsslon Lo commlL fraud or oLher
crlmes. 5ee lederal 1rade Commlsslon, llghLlng 8ack agalnsL ldenLlLy 1hefL. 5ee olso
www.fLc.gov/bcp/edu/mlcroslLes/ldLhefL/consumers/abouL-ldenLlLy-LhefL.hLml (CcL. 19, 2011).
13. 1he lederal 1rade Commlsslon esLlmaLes LhaL Lhe ldenLlLles of as many as
9 mllllon Amerlcans are sLolen each year. lJ.
14. hlshlng" ls a form of onllne ldenLlLy LhefL LhaL lures consumers lnLo dlvulglng
Lhelr personal flnanclal lnformaLlon Lo fraudulenL webslLes, also known as spoofed webslLes.
lor example, a phlsher sends an emall message Lo an unsuspecLlng vlcLlm lnsLrucLlng hlm Lo
cllck on Lhe llnk Lo a bank's webslLe (provlded ln Lhe emall) Lo conflrm Lhe consumer's accounL


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lnformaLlon. unbeknownsL Lo Lhe consumer, Lhe webslLe ls a convlnclng fake or copy of Lhe
auLhenLlc webslLe. 1he unsuspecLlng cusLomer Lakes Lhe balL and provldes Lhe lnformaLlon,
Lhereby enabllng Lhe phlsher Lo sLeal hls or her personal flnanclal lnformaLlon. 1he phlsher can
Lhen use Lhls lnformaLlon Lo clean ouL Lhe vlcLlm's bank accounLs or commlL oLher forms of
ldenLlLy LhefL.
1S. harmlng" ls slmllar Lo phlshlng buL more sophlsLlcaLed. harmers also send
e-malls. Consumers, however, can be duped by Lhe pharmer wlLhouL even openlng an e-mall
aLLachmenL. A consumer compromlses hls or her personal flnanclal lnformaLlon slmply by
openlng Lhe e-mall message. 1he pharmlng e-mall message conLalns a vlrus (or 1ro[an horse)
LhaL lnsLalls a small sofLware program on Lhe user's compuLer. 1hereafLer, when Lhe consumer
Lrles Lo vlslL an offlclal webslLe, Lhe pharmer's sofLware program redlrecLs Lhe browser Lo Lhe
pharmer's fake verslon of Lhe webslLe. ln Lhls way, Lhe pharmer ls able Lo capLure Lhe personal
flnanclal lnformaLlon LhaL Lhe consumer enLers lnLo Lhe counLerfelL webslLe, Lhereby
compromlslng Lhe consumer's accounL.
16. As a dlrecL and/or proxlmaLe resulL of Lhe Zappos.com daLa breach, Lhe hacker(s)
and/or Lhelr cusLomers (Lhere ls a robusL lnLernaLlonal markeL for lnformaLlon such as Lhe
purlolned CAl) now have lalnLlff's and Class Members' CAl, as well as Lhe knowledge LhaL
lalnLlff and Class Members are accusLomed Lo recelvlng emalls from Zappos.com. 1hls, ln Lurn,
makes lalnLlff and Class Members much more llkely Lo respond Lo requesLs from Zappos.com
for more personal lnformaLlon, such as bank accounL numbers, logln lnformaLlon or even Soclal
SecurlLy numbers. As such, consumers-such as lalnLlff and Class Members-are more llkely
Lo unknowlngly glve away Lhelr senslLlve personal lnformaLlon Lo phlshlng" and pharmlng"


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Lhleves who speclallze ln consLrucLlng spoof webslLes and emalls LhaL mlrror Lhe brand Lhey're
spooflng-such as Zappos.com and/or oLher popular onllne reLallers and flnanclal lnsLlLuLlons.
17. Accordlng Lo Lhe lederal 1rade Commlsslon, ldenLlLy LhefL ls serlous. Whlle
some ldenLlLy LhefL vlcLlms can resolve Lhelr problems qulckly, oLhers spend hundreds of dollars
and many days repalrlng damage Lo Lhelr good name and credlL record. Some consumers
vlcLlmlzed by ldenLlLy LhefL may lose ouL on [ob opporLunlLles, or be denled loans for educaLlon,
houslng or cars because of negaLlve lnformaLlon on Lhelr credlL reporLs. ln rare cases, Lhey may
even be arresLed for crlmes Lhey dld noL commlL."
18. ldenLlLy LhefL crlmes ofLen lnvolve more Lhan [usL crlmes of flnanclal loss, such as
varlous Lypes of governmenL fraud (such as obLalnlng a drlver's llcense or offlclal ldenLlflcaLlon
card ln Lhe vlcLlm's name buL wlLh Lhelr plcLure), uslng a vlcLlm's name and Soclal SecurlLy
number Lo obLaln governmenL beneflLs, and/or flllng a fraudulenL Lax reLurn uslng a vlcLlm's
lnformaLlon. ldenLlLy Lhleves also obLaln [obs uslng sLolen Soclal SecurlLy numbers, renL houses
and aparLmenLs and/or obLaln medlcal servlces ln a vlcLlm's name. ldenLlLy Lhleves also have
been known Lo glve a vlcLlm's personal lnformaLlon Lo pollce durlng an arresL, resulLlng ln Lhe
lssuance of an arresL warranL ln Lhe vlcLlm's name and an unwarranLed crlmlnal record.
19. uefendanL's wrongful acLlons and/or lnacLlon here dlrecLly and/or proxlmaLely
caused Lhe LhefL and dlssemlnaLlon lnLo Lhe publlc domaln of lalnLlff's and Class Members'
CAl wlLhouL Lhelr knowledge, auLhorlzaLlon and/or consenL. As a furLher dlrecL and/or
proxlmaLe resulL of uefendanL's wrongful acLlons and/or lnacLlon, lalnLlff and Class Members
have suffered, and wlll conLlnue Lo suffer, damages lncludlng, wlLhouL llmlLaLlon, loss of Lhe
unencumbered use of Lhelr exLanL passwords and Lhe loss of Lhelr passwords, expenses for


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credlL monlLorlng and ldenLlLy LhefL lnsurance, ouL-of-pockeL expenses, anxleLy, emoLlonal
dlsLress, loss of prlvacy, and oLher economlc and non-economlc harm.
20. AlLhough ln lLs e-malls Lo lalnLlff and Class Members, Zappos.com
recommended LhaL Lhey reseL Lhelr Zappos.com accounL passwords and change Lhe passwords
on any oLher web slLe where [Lhey] use Lhe same or a slmllar password," Lo daLe, uefendanL
has noL offered lalnLlff and Class Members any compensaLlon or dlrecL personal proLecLlon
from Lhe daLa breach-such as credlL monlLorlng servlces and/or ldenLlLy LhefL lnsurance.
1hls case has resulLed.
CLASS AC1ICN ALLLGA1ICNS
21. ursuanL Lo 8ule 23 of Lhe lederal 8ules of Clvll rocedure, lalnLlff brlngs Lhls
class acLlon as a naLlonal class acLlon on behalf of herself and Lhe followlng Class of slmllarly
slLuaLed lndlvlduals:
All persons whose Zappos.com personal cusLomer accounL
lnformaLlon lncludlng, lotet ollo, name, accounL number,
password, e-mall address, bllllng and shlpplng addresses,
phone number, and Lhe lasL four dlglLs of Lhe credlL cards used
Lo make purchases, was sLolen by hackers who galned access
Lo Zappos.com's lnLernal neLwork Lhrough unproLecLed servers
locaLed ln kenLucky.

22. 1he Class speclflcally excludes uefendanL and lLs offlcers, dlrecLors, agenLs
and/or employees, Lhe CourL and CourL personnel.
23. 1he puLaLlve Class ls comprlsed of over 24 mllllon persons, maklng [olnder
lmpracLlcable. ulsposlLlon of Lhls maLLer as a class acLlon wlll provlde subsLanLlal beneflLs and
efflclencles Lo Lhe arLles and Lhe CourL.


8
24. 1he rlghLs of each Class Member were vlolaLed ln a vlrLually ldenLlcal manner as
a resulL of uefendanL's wlllful, reckless and/or negllgenL acLlons and/or lnacLlon.
2S. CuesLlons of law and facL common Lo all Class Members exlsL and predomlnaLe
over any quesLlons affecLlng only lndlvldual Class Members lncludlng, lotet ollo:

a) WheLher uefendanL vlolaLed lC8A by falllng Lo properly secure and
LransporL lalnLlff's and Class Members' CAl,

b) WheLher uefendanL vlolaLed lC8A by falllng Lo encrypL lalnLlff's and
Class Members' CAl ln accordance wlLh federal sLandards,

c) WheLher uefendanL wlllfully, recklessly and/or negllgenLly falled Lo
malnLaln and/or execuLe reasonable procedures deslgned Lo prevenL
unauLhorlzed access Lo lalnLlff's and Class Members' CAl,

d) WheLher uefendanL was negllgenL ln sLorlng lalnLlff's and Class
Members' CAl,

e) WheLher uefendanL owed a duLy Lo lalnLlff and Class Members Lo
exerclse reasonable care ln proLecLlng and securlng Lhelr CAl,

f) WheLher uefendanL breached lLs duLy Lo exerclse reasonable care ln
falllng Lo proLecL and secure lalnLlff's and Class Members' CAl,

g) WheLher uefendanL was negllgenL ln falllng Lo secure lalnLlff's and
Class Members' CAl,

h) WheLher by publlcly dlscloslng lalnLlff's and Class Members' CAl
wlLhouL auLhorlzaLlon, uefendanL lnvaded lalnLlff's and Class Members'
prlvacy, and

i) WheLher lalnLlff and Class Members susLalned damages as a resulL of
uefendanL's fallure Lo secure and proLecL Lhelr CAl.

26. lalnLlff and Lhelr counsel wlll falrly and adequaLely represenL Lhe lnLeresLs of
Class Members. lalnLlff has no lnLeresLs anLagonlsLlc Lo, or ln confllcL wlLh, Class Members'


9
lnLeresLs. lalnLlff's lawyers are hlghly experlenced ln Lhe prosecuLlon of consumer class acLlon
and daLa breach cases.
27. lalnLlff's clalms are Lyplcal of Class Members' clalms ln LhaL lalnLlff's clalms and
Class Members' clalms all arlse from uefendanL's fallure Lo properly secure and proLecL Lhelr
CAl.
28. A class acLlon ls superlor Lo all oLher avallable meLhods for falrly and efflclenLly
ad[udlcaLlng lalnLlff's and Class Members' clalms. lalnLlff and Class Members have been
lrreparably harmed as a resulL of uefendanL's wrongful acLlons and/or lnacLlon. LlLlgaLlng Lhls
case as a class acLlon wlll reduce Lhe posslblllLy of repeLlLlous llLlgaLlon relaLlng Lo uefendanL's
fallure Lo secure and proLecL lalnLlff's and Class Members' CAl.
29. Class cerLlflcaLlon, Lherefore, ls approprlaLe pursuanL Lo lLu. 8. Clv. . 23(b)(3)
because Lhe above common quesLlons of law or facL predomlnaLe over any quesLlons affecLlng
lndlvldual Class Members, and a class acLlon ls superlor Lo oLher avallable meLhods for Lhe falr and
efflclenL ad[udlcaLlon of Lhls conLroversy.
30. Class cerLlflcaLlon also ls approprlaLe pursuanL Lo lLu. 8. Clv. . 23(b)(2) because
uefendanL has acLed or refused Lo acL on grounds generally appllcable Lo Lhe Class, so LhaL flnal
ln[uncLlve rellef or correspondlng declaraLory rellef ls approprlaLe as Lo Lhe Class as a whole.
31. 1he expense and burden of llLlgaLlon would subsLanLlally lmpalr Lhe ablllLy of Class
Members Lo pursue lndlvldual lawsulLs ln order Lo vlndlcaLe Lhelr rlghLs. AbsenL a class acLlon,
uefendanL wlll reLaln Lhe beneflLs of lLs wrongdolng desplLe lLs serlous vlolaLlons of Lhe law.



10
CLAIMS ICk kLLILI]CAUSLS CI AC1ICN
CCUN1 I
WILLIUL VICLA1ICN CI 1nL IAIk CkLDI1 kLCk1ING AC1
32. 1he precedlng facLual sLaLemenLs and allegaLlons are lncorporaLed hereln by
reference.
33. lC8A requlres consumer reporLlng agencles Lo adopL and malnLaln procedures
for meeLlng Lhe needs of commerce for consumer credlL, personnel, lnsurance and oLher
lnformaLlon ln a manner falr and equlLable Lo consumers whlle malnLalnlng Lhe confldenLlallLy,
accuracy, relevancy and proper uLlllzaLlon of such lnformaLlon. 1S u.S.C. 1681(b).
34. lC8A deflnes a consumer reporLlng agency" as:

Any person whlch, for moneLary fees, dues, or on a cooperaLlve nonproflL
basls, regularly engages ln whole or ln parL ln Lhe pracLlce of assembllng
or evaluaLlng consumer credlL lnformaLlon or oLher lnformaLlon on
consumers for Lhe purpose of furnlshlng consumer reporLs Lo Lhlrd
parLles, and whlch uses any means or faclllLy of lnLersLaLe commerce for
Lhe purpose of preparlng or furnlshlng consumer reporLs.

1S u.S.C. 1681a(f).
3S. lC8A deflnes a consumer reporL" as:
[A]ny wrlLLen, oral, or oLher communlcaLlon of any lnformaLlon by a
consumer reporLlng agency bearlng on a consumer's credlL worLhlness,
credlL sLandlng, credlL capaclLy, characLer, general repuLaLlon, personal
characLerlsLlcs, or mode of llvlng whlch ls used or expecLed Lo be used or
collecLed ln whole or ln parL for Lhe purpose of esLabllshlng Lhe
consumer's ellglblllLy for credlL or lnsurance Lo be used prlmarlly for
personal, famlly, or household purposes, employmenL purposes, or any
oLher purpose auLhorlzed under [1S u.S.C. ] 1681(b).

1S u.S.C. 1681a(d)(1).


11
36. uefendanL ls a Consumer 8eporLlng Agency as deflned under lC8A because on a
cooperaLlve nonproflL basls and/or for moneLary fees, uefendanL regularly engages, ln whole or
ln parL, ln Lhe pracLlce of assembllng lnformaLlon on consumers for Lhe purpose of furnlshlng
Consumer 8eporLs Lo Lhlrd parLles and/or uses lnLersLaLe commerce for Lhe purpose of
preparlng and/or furnlshlng Consumer 8eporLs.
37. As a Consumer 8eporLlng Agency, uefendanL was (and conLlnues Lo be) requlred
Lo adopL and malnLaln procedures deslgned Lo proLecL and llmlL Lhe dlssemlnaLlon of consumer
credlL, personnel, lnsurance and oLher lnformaLlon ln a manner falr and equlLable Lo consumers
whlle malnLalnlng Lhe confldenLlallLy, accuracy, relevancy and proper uLlllzaLlon of such
lnformaLlon. uefendanL, however, vlolaLed lC8A by falllng Lo adopL and malnLaln such
proLecLlve procedures whlch, ln Lurn, dlrecLly and/or proxlmaLely resulLed ln Lhe LhefL and
wrongful dlssemlnaLlon of lalnLlff's and Class Members' CAl lnLo Lhe publlc domaln.
38. uefendanL's vlolaLlon of lC8A, as seL forLh above, was wlllful or, aL Lhe very leasL,
reckless.
39. As a dlrecL and/or proxlmaLe resulL of uefendanL's wlllful and/or reckless
vlolaLlons of lC8A, as descrlbed above, lalnLlff's and Class Members' CAl was sLolen and
made accesslble Lo unauLhorlzed Lhlrd parLles ln Lhe publlc domaln.
40. As a furLher dlrecL and/or proxlmaLe resulL of uefendanL's wlllful and/or reckless
vlolaLlons of lC8A, as descrlbed above, lalnLlff and Class Members were (and conLlnue Lo be)
damaged ln Lhe form of, wlLhouL llmlLaLlon, expenses for credlL monlLorlng and ldenLlLy LhefL
lnsurance, ouL-of-pockeL expenses, anxleLy, emoLlonal dlsLress, loss of prlvacy and oLher


12
economlc and non-economlc harm. uefendanL's wrongful acLlons and/or lnacLlon vlolaLed
lC8A.
41. lalnLlff and Class Members, Lherefore, are enLlLled Lo compensaLlon for Lhelr
acLual damages lncludlng, lotet ollo, expenses for credlL monlLorlng and ldenLlLy LhefL
lnsurance, ouL-of-pockeL expenses, and oLher economlc and non-economlc harm, or sLaLuLory
damages of noL less Lhan $100, and noL more Lhan $1000, each, as well as aLLorneys' fees,
llLlgaLlon expenses and cosLs, pursuanL Lo 1S u.S.C. 1681n(a).
CCUN1 II
NLGLIGLN1 VICLA1ICN CI 1nL IAIk CkLDI1 kLCk1ING AC1
reference.
43. uefendanL owed a duLy Lo lalnLlff and Class Members Lo safeguard and proLecL
Lhelr CAl. ln Lhe alLernaLlve, and as descrlbed above, uefendanL negllgenLly vlolaLed lC8A by
falllng Lo adopL and malnLaln procedures deslgned Lo proLecL and llmlL Lhe dlssemlnaLlon of
lalnLlff's and Class Members' CAl for Lhe permlsslble purposes ouLllned by lC8A whlch,
ln Lurn, dlrecLly and/or proxlmaLely resulLed ln Lhe LhefL and wrongful dlssemlnaLlon of
lalnLlff's and Class Members' CAl lnLo Lhe publlc domaln.
44. lL was reasonably foreseeable LhaL uefendanL's fallure Lo malnLaln procedures Lo
proLecL and secure lalnLlff's and Class Members' CAl would resulL ln an unauLhorlzed Lhlrd
parLy galnlng access Lo Lhelr CAl for no permlsslble purpose under lC8A.


13
4S. As a dlrecL and/or proxlmaLe resulL of uefendanL's negllgenL vlolaLlons of lC8A,
as descrlbed above, lalnLlff's and Class Members' CAl was sLolen and made accesslble Lo
unauLhorlzed Lhlrd parLles ln Lhe publlc domaln.
46. As a furLher dlrecL and/or proxlmaLe resulL of uefendanL's negllgenL vlolaLlons of
lC8A, as descrlbed above, lalnLlff and Lhe Class Members were (and conLlnue Lo be) damaged
ln Lhe form of, wlLhouL llmlLaLlon, expenses for credlL monlLorlng and ldenLlLy LhefL lnsurance,
ouL-of-pockeL expenses, anxleLy, emoLlonal dlsLress, loss of prlvacy, and oLher economlc and
non-economlc harm. uefendanL's wrongful acLlons and/or lnacLlon vlolaLed lC8A.
47. lalnLlff and Class Members, Lherefore, are enLlLled Lo compensaLlon for Lhelr
acLual damages, lncludlng, lotet ollo, expenses for credlL monlLorlng and ldenLlLy LhefL
lnsurance, ouL-of-pockeL expenses, and oLher economlc and non-economlc harm, as well as
aLLorneys' fees, llLlgaLlon expenses and cosLs, pursuanL Lo 1S u.S.C. 1681o(a).
CCUN1 III
NLGLIGLNCL
reference.
49. uefendanL owed a duLy Lo lalnLlff and Class Members Lo safeguard and proLecL
Lhelr CAl.
S0. uefendanL breached lLs duLy by falllng Lo exerclse reasonable care ln lLs
safeguardlng and proLecLlon of lalnLlff's and Class Members' CAl.


14
S1. lL was reasonably foreseeable LhaL uefendanL's fallure Lo exerclse reasonable
care ln safeguardlng and proLecLlng lalnLlff's and Class Members' CAl would resulL ln an
unauLhorlzed Lhlrd parLy galnlng access Lo such lnformaLlon for no lawful purpose.
S2. lalnLlff and Lhe Class Members were (and conLlnue Lo be) damaged as a dlrecL
and/or proxlmaLe resulL of uefendanL's fallure Lo secure and proLecL Lhelr CAl ln Lhe form of,
lotet ollo, expenses for credlL monlLorlng and ldenLlLy LhefL lnsurance, ouL-of-pockeL expenses,
anxleLy, emoLlonal dlsLress, loss of prlvacy, and oLher economlc and non-economlc harm-for
whlch Lhey are enLlLled Lo compensaLlon.
S3. uefendanL's wrongful acLlons and/or lnacLlon (as descrlbed above) consLlLuLed
(and conLlnue Lo consLlLuLe) negllgence aL common law.
CCUN1 IV
INVASICN CI kIVAC 8 U8LIC DISCLCSUkL CI kIVA1L IAC1S
S4. 1he precedlng facLual sLaLemenLs and allegaLlons are lncorporaLed hereln by
reference.
SS. lalnLlff's and Class Members' CAl were (and conLlnue Lo be) prlvaLe
lnformaLlon.
S6. uefendanL's fallure Lo secure and proLecL lalnLlff's and Class Members' CAl
dlrecLly resulLed ln Lhe publlc dlsclosure of such prlvaLe lnformaLlon.
S7. ulssemlnaLlon of lalnLlff's and Class Members' CAl ls noL of a leglLlmaLe publlc
concern, publlclLy of Lhelr CAl would be, ls and wlll conLlnue Lo be, offenslve Lo lalnLlff, Class
Members, and oLher reasonable people.
S8. lalnLlff and Lhe Class Members were (and conLlnue Lo be) damaged as a dlrecL
and/or proxlmaLe resulL of uefendanL's lnvaslon of Lhelr prlvacy by publlcly dlscloslng Lhelr
prlvaLe facLs (l.e., Lhelr CAl) ln Lhe form of, lotet ollo, expenses for credlL monlLorlng and


15
ldenLlLy LhefL lnsurance, ouL-of-pockeL expenses, anxleLy, emoLlonal dlsLress, loss of prlvacy,
and oLher economlc and non-economlc harm-for whlch Lhey are enLlLled Lo compensaLlon. AL
Lhe very leasL, lalnLlff and Lhe Class Members are enLlLled Lo nomlnal damages.
S9. uefendanL's wrongful acLlons and/or lnacLlon (as descrlbed above) consLlLuLed
(and conLlnue Lo consLlLuLe) an lnvaslon of lalnLlff's and Class Members' prlvacy by publlcly
dlscloslng Lhelr prlvaLe facLs (l.e., Lhelr CAl).
kLLILI kLULS1LD
reference.
61. DAMAGLS. As a dlrecL and/or proxlmaLe resulL of uefendanL's wrongful acLlons
and/or lnacLlon (as descrlbed above), lalnLlff and Class Members suffered (and conLlnue Lo
suffer) damages ln Lhe form of, lotet ollo, loss of unencumbered use of exLanL passwords and
loss of passwords, expenses for credlL monlLorlng and ldenLlLy LhefL lnsurance, ouL-of-pockeL
expenses, anxleLy, emoLlonal dlsLress, loss of prlvacy, and oLher economlc and non-economlc
harm-for whlch Lhey are enLlLled Lo compensaLlon. lalnLlff and Class Members also are
enLlLled Lo recover sLaLuLory damages and/or nomlnal damages. lalnLlff's and Class Members'
damages were foreseeable by uefendanL and exceed Lhe mlnlmum [urlsdlcLlonal llmlLs of Lhls
CourL. All condlLlons precedenL Lo lalnLlff's and Class Members' clalms have been performed
and/or occurred.
62. LxLMLAk DAMAGLS. lalnLlff and Class Members also are enLlLled Lo exemplary
damages as punlshmenL and Lo deLer such wrongful conducL ln Lhe fuLure. All condlLlons
precedenL Lo lalnLlff's and Class Members' clalms have been performed and/or occurred.


16
63. INIUNC1IVL kLLILI. lalnLlff and Class Members also are enLlLled Lo ln[uncLlve rellef
ln Lhe form of, wlLhouL llmlLaLlon, (l) credlL monlLorlng, (ll) ldenLlLy LhefL lnsurance, and (lll)
requlrlng uefendanL Lo submlL Lo perlodlc compllance audlLs by a Lhlrd parLy regardlng Lhe
securlLy of consumers' CAl ln lLs possesslon, cusLody and conLrol. All condlLlons precedenL Lo
lalnLlff's and Class Members' clalms for rellef have been performed and/or occurred.
64. A11CkNLS' ILLS, LI1IGA1ICN LxLNSLS AND CCS1S. lalnLlff and Class Members also are
enLlLled Lo recover Lhelr aLLorneys' fees, llLlgaLlon expenses, and courL cosLs ln prosecuLlng Lhls
acLlon pursuanL Lo, lotet ollo, 1S u.S.C. 1681n(a), o(a). All condlLlons precedenL Lo lalnLlff's
and Class Members' clalms for rellef have been performed and/or occurred.
WnLkLICkL, lalnLlff, on behalf of herself and Lhe Class Members, respecLfully requesLs
LhaL (l) uefendanL be clLed Lo appear and answer Lhls lawsulL, (ll) Lhls acLlon be cerLlfled as a
Class AcLlon, (lll) lalnLlff be deslgnaLed Lhe Class 8epresenLaLlve, and (lv) lalnLlff's counsel be
appolnLed as Class Counsel. lalnLlff, on behalf of herself and Lhe Class Members, furLher requesLs
LhaL upon flnal Lrlal or hearlng, [udgmenL be awarded agalnsL uefendanLs, ln favor of lalnLlff
and Lhe Class Members, for:
(l) acLual damages, consequenLlal damages, lC8A sLaLuLory damages and/or nomlnal
damages (as descrlbed above) ln an amounL Lo be deLermlned by Lhe Lrler of facL,

(ll) exemplary damages:
(lll) ln[uncLlve rellef as seL forLh above,
(lv) pre- and posL-[udgmenL lnLeresL aL Lhe hlghesL appllcable legal raLes,
(v) aLLorneys' fees and llLlgaLlon expenses lncurred Lhrough Lrlal and any appeals,
(lv) cosLs of lawsulL, and
(v) such oLher and furLher rellef LhaL Lhls CourL deems [usL and proper.


17
IUk DLMAND
lalnLlff, on behalf of herself and Lhe Class Members, respecLfully demands a Lrlal by
[ury of any and all of her clalms and causes of acLlon so Lrlable.
uaLed: !anuary 16, 2012
8especLfully submlLLed,

/s/ Motk k. Ctoy
Mark k. Cray
C8A? & WPl1L
713 L. MarkeL SLreeL, Second lloor
Loulsvllle, kenLucky 40202
1elephone: (S02) 80S-1800
lacslmlle: (S02) 618-40S9
L-mall: mgray[grayandwhlLelaw.com

counse/ for P/ointiff ond the Putotive c/oss

Cf Counse|:

8en 8arnow
Lrlch . Schork
8lake A. SLrauLlns
8A8nCW Anu ASSCClA1LS, .C.
Cne n. LaSalle SLreeL, SulLe 4600
Chlcago, llllnols 60602
1elephone: (312) 621-2000
lacslmlle: (312) 641-SS04
L-mall: b.barnow[barnowlaw.com
L-mall: e.schork[barnowlaw.com
L-mall: b.sLrauLlns[barnowlaw.com

8lchard L. Coffman
1PL CCllMAn LAW ll8M
llrsL ClLy 8ulldlng
S0S Crleans SLreeL, SulLe S0S
8eaumonL, 1exas 77701
1elephone: (409) 833-7700
lacslmlle: (866) 83S-82S0
Lmall: rc[cofflaw.com


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