Consumer Law

AOB Files Databreach Case Against New York Life Insurance Co

By Kemnitzer, Anderson, Barron, Ogilvie & Brewer

In 2008, clients Jayni and Dan Fontaine applied for life insurance from New York Life Insurance Company. To be approved, they had to pass medical exams. As part of the exam process, they provided their personal identifying information. Their information and that of over 100 other persons went into a computerized database accesible by New York Life representatives. Two identity thieves in Sacramento then hacked into the database stealing the Fontaine's personal information.

The identity thieves ordered merchandise and opened accounts in the Fontaine's names and others. Victims in Davis, California, complained to the police; after obtaining a search warrant, the police found incriminating evidence in the fraudsters' apartment. The FBI and U.S. Attorney later took over the case and filed criminal complaints against the pair. Both have pled guilty.

California law requires any company that suffers a databreach of personal information to promptly notify the victims. The Fontaine complaint, which was filed in Sacramento County Superior Court, alleges that New York Life Insurance did not promptly notify the victims. The Fontaines allege that the delay resulted in their credit being ruined.They are suing for damages.

Full post as published by California Credit Law Blog on December 22, 2010 (boomark / email).