Kroger decides to pay $5 million for Accellion data breach


Remember quite some time back Kroger had faced any issue where the employee’s data was leaked? Well, in that regard, the giant store chain Kroger Co has agreed to pay $5 million. The agreement is made to settle claims related to a recent data breach for Accellion Inc’s file transfer service, according to court filings.


While if we look into the details of the deal which will end the lawsuits against Kroger on behalf of the around 3.82 million existing and former pharmacy customers and employees whose personal information was cooperated in the software vendor’s breach. According to an initial consent request for a proposed class action settlement filed Wednesday in California federal court.

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In this regard, the lawsuit, one of several filed in the past few months against Kroger. The lawsuit said the proposed deal “resolves only claims against Kroger” and would also release claims in multiple lawsuits in Ohio and Indiana proceedings against the supermarket chain. While there’s no official response from Ahdut Wolfson’s Tina Wolfson. An attorney representing the plaintiffs. They did not immediately respond to a request for comment. Nor did Sidley Austin’s Amy Lally, who represents Kroger and Accellion.

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While the company Accellion stated that customers whose data got hackers exploited vulnerabilities in its legacy file transfer product in December 2020 and January 2021. The incident affected a number of companies, universities, and others, including the law firm Jones Day. Kroger publicly revealed on February 19 that the personal data of some pharmacy customers and employees had been compromised, according to the report. However, the plaintiffs in the proposed class action claim that Kroger and Accellion lack passable data security observes to protect personal information. Among other shortcomings, and that Kroger botched an obligation to protect their sensitive information from disclosure.

In addition to the $5 million settlement fund, Kroger has decided to change its business practices under the proposed business. This will include confirming that it has moved to a “new secure file transfer solution.” Securing or destroying personal information that is subject to a breach and strengthening a third-party vendor risk management program, according to the report.

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