Ally Bank Customers Lack Standing to Pursue Data Breach Claims (2024)

Ally Bank successfully evaded claims over a data breach that compromised customers’ usernames and passwords, after a federal judge in Manhattan ruled that the customers didn’t suffer concrete injuries from the breach and therefore lacked standing.

David De Medicis filed the proposed class action in August 2021, claiming that Ally Bank inadvertently revealed customers’ usernames and passwords to its business partners through a coding error. De Medicis also said that Ally didn’t adequately test or monitor the security of its website, and didn’t notify customers until two months after the breach occurred.

Judge Nelson S. Román of the US District ...

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