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PayPal Sued for Negligence over December Data Breach, Invests in Cybersecurity Firm

March 7, 2023

Two PayPal customers sued the company for negligence over a December data breach that the company reported in January. The plaintiffs allege that PayPal failed to comply with FTC guidelines and failed to comply with industry standards and are seeking class status.

The complaint, filed on March 2, 2023, alleges in part: “PayPal knew or should have known that its computer systems and data security practices were inadequate to safeguard the Private Information of Plaintiff Pillard and members of the Nebraska state subclass, to deter hackers, and to detect a data breach within a reasonable amount of time. PayPal knew or should have known that the risk of a data breach was highly likely.”

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