Kronos, a company that provides workforce management services, has reportedly agreed to settle a lawsuit brought by a group of its employees. The employees alleged that Kronos was negligent in its duty to prevent a ransomware attack in 2021, which led to the theft of their personal data. As per the recent court filing, Kronos has agreed to pay a maximum of $6 million to settle the lawsuit.
Kronos Private Cloud (also known as Kronos), a timekeeping software product owned by UKG, was targeted in 2021 by ransomware attackers. This resulted in significant discrepancies in payroll for businesses that relied on the Kronos software. Based on legal records, in January 2022, a group of workers initiated legal proceedings against Kronos, alleging that the company’s inadequate cybersecurity protocols led to a ransomware attack. The attack resulted in the theft of personal information belonging to both employees and their dependents. Additionally, the lawsuit claims that Kronos’ customers were impacted by the attack as they were temporarily unable to use the company’s timecard applications and other services, leading to damages.
Lawyers representing a group of employees from multiple companies that utilized Kronos’ software have requested that a California federal court approve a proposed settlement. The settlement would require UKG Inc., Kronos’ parent company, to establish a $5.5 million settlement fund that would provide compensation for individuals who suffered harm as a result of the attack. The fund would also cover other expenses, including legal fees. Furthermore, if the initial settlement fund is exhausted due to a high volume of submitted claims, UKG has agreed to add another $500,000 to the fund. The filing also states that UKG has already spent approximately $1.5 million on implementing “security hardening measures” following the attack, explains the counsel.
If you have been the victim of a personal data breach due to your employer’s use of third-party services, it is important to seek legal representation to protect your rights. Our experienced attorneys at Fitapelli & Schaffer have extensive knowledge of employment law and can help you navigate the complexities of your case. We understand the stress and anxiety that comes with such a violation, and we are here to fight for the justice and compensation you deserve. Contact us today for a free consultation to discuss your legal options and how we can assist you in seeking justice for your damages.