Plaintiffs Allege Negligence Against Shipbuilder Over Data Breach

A group of former and current employees is embroiled in a legal battle with their employer over a data breach that exposed sensitive personal information. The plaintiffs, led by Michael Bauer, filed the complaint on January 25, 2024, in the Circuit Court for Brown County against Fincantieri Marine Group (FMG), an American shipbuilder. The lawsuit arises from a ransomware attack on FMG’s computer systems that compromised employees’ personally identifiable information.

The plaintiffs allege that FMG failed to adequately protect their sensitive data, which included names, Social Security numbers, and health information. Despite the breach being discovered on April 12, 2023, FMG only notified affected individuals in January 2024. In response to the breach, FMG offered complimentary credit monitoring services through Experian and implemented additional security measures. However, the plaintiffs argue that these steps were insufficient and claim they face ongoing threats of identity theft and fraud due to FMG’s negligence.

In their complaint, the plaintiffs assert multiple causes of action including negligence, breach of contract, unjust enrichment, and breach of fiduciary duty. They seek declaratory and injunctive relief along with damages for economic harm and loss of privacy resulting from the data breach. However, they have not alleged any actual instances of identity theft or misuse of their data.

The Circuit Court dismissed the case for lack of standing as the plaintiffs could not demonstrate an imminent threat or actual misuse of their information. The court concluded that speculative future harm does not meet the legal threshold for standing under Wisconsin law. The plaintiffs appealed this decision but faced similar challenges at the appellate level where judges Stark, Hruz, and Gill upheld the dismissal.

Representing the plaintiffs are attorneys from various law firms including Samuel A. Christensen as Clerk of Court Appeals. The defendants are represented by unnamed lawyers associated with ABC Insurance Company and Starr Insurance Holdings d/b/a Starr Indemnity & Liability Co., who are also named in the lawsuit alongside FMG.