Another class-action lawsuit filed over Rackspace outage; says company failed to protect users’ data

of failing to safeguard his and other class members’ personal information and other sensitive data and to continuously provide email services.

The suit was filed in San Antonio federal court Tuesday, the same day Rackspace confirmed the outage was caused by a ransomware attack that led it to shut down its hosted Exchange email service. It has not specified how many customers are affected, but said it expected a loss of revenue in the business line, which generates about $30 million annually. Investigations of the breach — both internally and by law enforcement — are in progress.

In Tuesday’s filing, Ondo says Rackspace allowed customer data to be compromised by “an undoubtedly nefarious third party that seeks to profit off this disclosure by defrauding” customers. The company also failed to adequately alert customers about the outage, posting “opaque” announcements on its website and not responding if directly contacted, Ondo says.

The lawsuit alleges negligence and breach of confidence, implied contract and implied covenant of good faith and fair dealing. It seeks more than $5 million in damages and says there are more than 100 members in the proposed class.by Gateway Recruiting LLC and Garrett Stephenson, president of the New Braunfels-based executive recruiting firm. It’s possible that the cases could be combined at some point.madison.iszler@express-news.

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Rackspace customer emails impacted after ransomware breached hosted exchange environment, company saysSan Antonio-based company Rackspace has confirmed that a piece of ransomware managed to breach its hosted exchange environment.
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