CLASS ACTION COMPLAINT 1 Tina Wolfson, SBN 174806 Twolfson
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1 Tina Wolfson, SBN 174806 [email protected] 2 Theodore W. Maya, SBN 223242 3 [email protected] AHDOOT & WOLFSON, PC 4 10728 Lindbrook Drive 5 Los Angeles, California 90024 Tel: (310) 474-9111 6 Fax: (310) 474-8585 7 8 Benjamin F. Johns [email protected] 9 Beena M. McDonald 10 [email protected] CHIMICLES SCHWARTZ KRINER 11 & DONALDSON-SMITH LLP 12 One Haverford Centre 361 West Lancaster Avenue 13 Haverford, PA 19041 14 Telephone: (610) 642-8500 Fax: (610) 649-3633 15 16 SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES, CENTRAL DISTRICT 17 18 19 KYNDAL CHRISTOFFERSON, on CASE NO. behalf of herself and all others similarly 20 situated, CLASS ACTION COMPLAINT 21 1. NEGLIGENCE Plaintiff, 2. BREACH OF IMPLIED CONTRACT 22 3. VIOLATIONS OF THE MARYLAND 23 v. CONSUMER PROTECTION ACT 4. VIOLATION OF THE UCL 24 CREATION ENTERTAINMENT, 5. UNJUST ENRICHMENT 25 INC., CLASS ACTION – COMPLEX 26 Defendant. 27 JURY TRIAL DEMANDED 28 CLASS ACTION COMPLAINT 1 1 Plaintiff Kyndal Christofferson (“Plaintiff”) individually and on behalf of all 2 others similarly situated, upon personal knowledge of the facts pertaining to her and on 3 information and belief as to all other matters, by and through undersigned counsel, 4 hereby brings this Class Action Complaint against Defendant Creation Entertainment, 5 Inc. (“Creation”). 6 NATURE OF THE ACTION 7 1. Plaintiff brings this action, individually and on behalf of all others 8 similarly situated whose sensitive financial and personal non-public information, 9 including but not limited to (a) names; (b) addresses; (c) email addresses; and (d) 10 payment card information (including, inter alia, card numbers, expiration dates, and 11 security codes (“CVV numbers”)) (collectively, “Personal Information”) was accessed 12 and captured from Creation’s systems by unauthorized users during a period of time 13 that ended on or around October 2018 (the “Data Breach”). 14 2. As alleged in greater detail below, Creation is a company that produces 15 live interactive entertainment conventions for fans of genre television and film. These 16 fans can purchase tickets to Creation’s events and merchandise directly through its 17 website. 18 3. On or around March 12, 2019, through its Facebook page, Creation first 19 stated it was aware of reports of fraudulent activity on its customers’ credit cards,1 but 20 Creation was careful not to admit to the existence of a data breach and merely stated it 21 was investigating the issue. 22 4. The following day, on March 13, 2019, Creation posted a slightly more 23 detailed announcement on its website, informing customers that Creation was advised 24 by several customers of possible fraudulent debit and credit card charges to their 25 accounts. However, Creation was adamant in denying any breaches to its system, and 26 further denied any breaches reported by its debit/credit card processors. 27 28 1 https://www.facebook.com/CreationEntertainment/ (last visited: April 2, 2019). CLASS ACTION COMPLAINT 2 1 5. An update was posted on Creation’s website on March 14, 2019, asking 2 customers to contact Creation’s customer service team if they were notified of possible 3 suspicious activity on their debit and credit cards. Still without admitting a data breach, 4 Creation asked for its customers’ patience. 5 6. The truth was revealed on March 19, 2019, when Creation first publicly 6 confirmed in an announcement on its website that there was a breach of its system 7 related to transactions that occurred in and prior to October 2018. 8 7. Upon information and belief, Creation’s system was accessed by 9 unauthorized users who were able to capture customers’ Personal Information, 10 including payment card information, entered while making online purchases on 11 Creation’s website. 12 8. As alleged herein, Creation’s failure to implement or maintain adequate 13 data security measures for customers’ information, including Personal Information, 14 directly and proximately caused injuries to Plaintiff and the Class (defined below). 15 9. Creation failed to take reasonable steps to employ adequate security 16 measures or to properly protect sensitive payment Personal Information despite well- 17 publicized data breaches at large national retail chains in recent years, including 18 Marriott, Arby’s, Wendy’s, Target, Home Depot, Sally Beauty, Harbor Freight Tools, 19 P.F. Chang’s, Dairy Queen, Kmart, and many others. 20 10. The Data Breach was the inevitable result of Creation’s inadequate data 21 security measures and cavalier approach to data security. Despite the well-publicized 22 and ever-growing threat of security breaches involving payment card networks and 23 systems, and despite the fact that these types of data breaches were and are occurring 24 throughout the retail industry, Creation failed to ensure that it maintained adequate data 25 security measures, causing customers’ Personal Information to be stolen and/or 26 accessed by unauthorized users. 27 11. As a direct and proximate consequence of Creation’s negligence and/or 28 failure to implement and maintain adequate security measures, the sensitive Personal CLASS ACTION COMPLAINT 3 1 Information of consumers was stolen from Creation. Victims of the Data Breach have 2 had their Personal Information compromised, had their privacy rights violated, been 3 exposed to the increased risk of fraud and identify theft, lost control over their personal 4 and financial information, and otherwise been injured. 5 12. Moreover, Plaintiff and Class Members have been forced to spend 6 significant time associated with, among other things, detecting and expending effort to 7 recuperate fraudulent charges on their debit and credit cards, cancelling/closing and 8 opening new credit or debit card accounts, ordering replacement cards, obtaining fraud 9 monitoring services, losing access to cash flow and credit lines, monitoring credit 10 reports and accounts, and/or other losses resulting from the unauthorized use of their 11 cards or accounts. Rather than providing meaningful assistance to consumers to help 12 deal with the fraud that has and will continue to result from the Data Breach, Creation 13 simply told them that Creation’s new system does not have any issues. In contrast to 14 what is, and has been, frequently made available to consumers in recent data breaches, 15 Creation has not offered or provided any monitoring service or fraud insurance to date. 16 13. Plaintiff and Class Members seek to recover damages caused by Creation’s 17 negligence, breach of implied contract, unjust enrichment and violations of state 18 consumer protection and data privacy statutes. Additionally, Plaintiff seeks declaratory 19 and injunctive relief as a result of the conduct of Creation discussed herein. 20 PARTIES 21 Plaintiff 22 14. Plaintiff Kyndal Christofferson is an adult residing in Millersville, 23 Maryland. 24 15. Prior to October 2018, Plaintiff Christofferson made several purchases 25 from Creation Entertainment through attendance of its promoted fan conventions since 26 2015. 27 16. On or about March 12, 2019, Plaintiff Christofferson was alerted by her 28 bank that several fraudulent charges were made and/or attempted on her debit card. She CLASS ACTION COMPLAINT 4 1 immediately got in contact with her bank, who cancelled the debit card that she had on 2 file. Several days later, her credit card was also subject to several fraudulent charges, 3 which was cancelled as well due to suspected fraud. Even though her debit card has 4 been cancelled, her debit account continues to be subjected to attempted fraudulent 5 charges. 6 17. Then, on March 19, 2019, Plaintiff Christofferson received an email from 7 Creation Entertainment informing her that Creation Entertainment was subject to a 8 breach related to transactions that occurred in or prior to October 2018. The letter 9 further states that more detailed notices would be sent out to individual cardholders 10 whose information was potentially compromised as result. 11 18. Had Plaintiff Christofferson known that Creation Entertainment would 12 not adequately protect her sensitive payment card information, she would not have 13 allowed her Personal Information to be entrusted to Creation Entertainment. 14 19. As a result of Creation Entertainment’s failure to adequately safeguard 15 Plaintiff Christofferson’s Personal Information, Plaintiff Christofferson has been 16 injured. 17 18 Defendant Creation Entertainment, Inc. 19 20. Creation was founded on or around in 1971 and is incorporated in 20 California, with its principal place of business located at 217 S. Kenwood Street, 21 Glendale, California 91205. 22 21. Creation operates in the United States, Canada and Great Britain with an 23 annual revenue base of $4.9 million2. 24 22. Creation describes itself as producing the world’s leading conventions for 25 fans of genre television and film. It purports not to oversell its venue, unlike other 26 27 2 http://www.buzzfile.com/business/Creation-Entertainment-Inc-818-507-6423 (last visited Mar. 29, 28 2019). CLASS ACTION COMPLAINT 5 1 conventions, and, through a wide variety of ticket options, guarantees a seat in its main 2 theater for all ticket holders to see all guest appearances and attractions. 3 23. Creation is also a licensee of merchandising for many television and film 4 genres, mainly in science fiction, horror and fantasy, with some of its biggest 5 partnerships names including Star Trek, Terminator, The X-Files, Lost, Xena, The Lord 6 of the Rings, Dr. Who, Stargate, The Muppets, The CW’s Supernatural and the Twilight 7 Saga. 8 JURISDICTION AND VENUE 9 24. This is brought as a class action to remedy violations of California law by 10 Creation Creation Entertainment Inc. This Court has subject matter jurisdiction over 11 this action pursuant to the California Code of Civil Procedure.