Shopify Is Facing A Class-Action Lawsuit From Crypto Holders: What You Need To Know

E-commerce platform Shopify Inc (NYSE: SHOP) has been named in a class-action lawsuit for allegedly failing to safeguard consumer information in a 2020 data breach impacting Ledger cryptocurrency wallets.

What Happened: According to a complaint filed in the U.S. District Court of Delaware on April 1, plaintiffs are seeking damages against Shopify and its third-party consultant TaskUs for its negligence in the data breach.

The lawsuit alleges that Shopify and TaskUs’s “failure to exercise reasonable care” resulted in the unauthorized public release of approximately 272,000 pieces of customer information, including names, postal addresses, and phone numbers.

Ledger is a cryptocurrency hardware wallet that lets users store their Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and other crypto holdings in a physical device off-chain.

See Also: BEST CRYPTO WALLETS

Between April and June 2020, hackers gained access to an exploited Ledger database through Shopify and TaskUs, the platform’s data processing vendors. The leaked information resulted in phishing scams where several customers lost their cryptocurrency assets.

This isn’t the first lawsuit against the companies filed by victims of the data breach. Last year, both Shopify and Ledger were named in a class-action suit for allegedly failing to protect customers’ identities and intentionally seeking to cover up the issue at the time.

Price Action: According to data from Benzinga Pro, Shopify shares closed 4.92% higher on Monday.

Bitcoin was trading at $46,763, gaining 1.47% in the last 24 hours and Ethereum was trading at $3,522, up 0.57% over the same period.

Photo by Raysonho on Wikimedia