Employees file class action lawsuits against Yum Brands following ransomware incident
In a significant cybersecurity incident that occurred on January 13, 2023, Yum Brands, the global restaurant company operating or franchising over 55,000 restaurants worldwide, fell victim to a ransomware attack.
The attack exposed personal information belonging primarily to employees in the United States. However, according to the company, there is no indication that customer data was impacted. Yum and its subsidiaries employ more than 23,000 people in the U.S., as stated in a lawsuit.
Following the incident, Yum immediately locked down systems, notified federal law enforcement, and brought in digital forensics and response experts to investigate the attack. The company has incurred expenses related to the response, remediation, and investigation, as stated in an SEC filing.
The stolen personal data, according to the disclosure letter, has not been used in any fraudulent activity. Yum is almost finished with the notification process and is offering complimentary monitoring and protection services to those affected.
The legal action related to the ransomware attack was initiated by the company's internal legal department or authorized corporate counsel, but specific individuals' names have not been publicly disclosed. Yum Brands is facing class action litigation in U.S. federal and state courts in connection with the attack.
A class action lawsuit filed in mid-April in the U.S. District Court in Louisville claims that an employee of Charter Brands, a Yum franchisee, received a letter stating their name, address, date of birth, and Social Security number may have been breached. Several similar class action lawsuits were filed in April by current and former employees alleging privacy violations in connection with the attack.
The attack forced the closure of nearly 300 restaurants in the U.K. for a single day in January. Despite the incident, Yum does not expect the attack to ultimately have a material adverse effect on its business.
Read also:
- Mural at blast site in CDMX commemorates Alicia Matías, sacrificing life for granddaughter's safety
- Is Maruti's reign over the SUV market being challenged by Mahindra's aggressive move to snatch the top spot?
- Social Security Administration Abandons Plan for Electronic Payments: Important Information for Recipients of Benefits
- Increased energy demand counters Trump's pro-fossil fuel strategies, according to APG's infrastructure team.
