Dec 20, 2021 | Blog
On December 20, 2021, the Securities and Exchange Commission (“SEC”) announced fraud charges against five Russian nationals for engaging in a multi-year scheme to profit from stolen corporate earnings announcements obtained by hacking into the systems of two U.S.-based filing agent companies before the announcements were made public.
The filing agents assist publicly-traded companies with the preparation and filing of periodic reports with the SEC, including quarterly reports containing earnings information.
The SEC’s complaint, filed in federal district court in Massachusetts, alleges that defendant Ivan Yermakov (“Yermakov”) used deceptive hacking techniques to access the filing agents’ systems and directly or indirectly provided not-yet-public corporate earnings announcements stolen from those systems to his co-defendants Vladislav Kliushin (“Kliushin”), Nikolai Rumiantcev (“Rumiantcev”), Mikhail Irzak (“Irzak”), and Igor Sladkov (“Sladkov”).
According to the complaint, from 2018 through 2020, the traders used 20 different brokerage accounts located in Denmark, the United Kingdom, Cyprus and Portugal to generate profits of at least $82 million using the stolen information to make trades before over 500 corporate earnings announcements. The defendants allegedly shared a portion of their enormous profits by funneling them through a Russian information technology company founded by Kliushin and for which Yermakov and Rumiantcev serve as directors.
The U.S. Attorney’s Office for the District of Massachusetts announced criminal charges against the five defendants named in the SEC’s action and that defendant Vladislav Kliushin was extradited from Switzerland.
The SEC’s complaint charges each of the defendants with violating the antifraud provisions of the federal securities laws and related SEC antifraud rules and seeks a final judgment ordering the defendants to pay penalties, return their ill-gotten gains with prejudgment interest, and enjoining them from committing future violations of the antifraud laws.
Source: SEC.gov
Kehoe Law Firm, P.C.
Dec 20, 2021 | Blog, Consumer Protection
Joint Letters Remind Landlords And Mortgage Servicers To Adhere To The CARES Act & Additional Legal Requirements Under The Servicemembers Civil Relief Act
On December 20, 2021, the Consumer Financial Protection Bureau (“CFPB”) and U.S. Department of Justice (“DOJ”) issued two joint letters regarding important legal housing protections for military families.
One letter was sent to landlords and other housing providers regarding protections for military tenants. A second letter was sent to mortgage servicers regarding military borrowers who have already exited or will be exiting COVID-19 mortgage forbearance programs in the coming weeks and months.
The letter to landlords and other housing providers reminds property owners of the important housing protections for military tenants, some of whom may have had to relocate or make other changes to their housing arrangements in response to the crisis. While military families enjoy the same legal protections and privileges afforded to all other homeowners and tenants, they also have additional housing protections under the Servicemembers Civil Relief Act (SCRA), which is enforceable by the DOJ and servicemembers themselves.
The letter to mortgage servicers comes in response to complaints from military families and veterans on a range of potential mortgage servicing violations, including inaccurate credit reporting, misleading communications to borrowers, and required lump sum payments for reinstating their mortgage loans. These complaints are being reviewed for compliance by the CFPB with the Coronavirus Aid, Relief, and Economic Security (CARES) Act and other applicable requirements.
The CFPB and DOJ are calling on mortgage servicers and landlords to ensure that military homeowners and tenants are safeguarded during the pandemic and benefit equally from the Nation’s economic recovery.
Source: CFPB/consumerfinance.gov.
Dec 20, 2021 | Blog, Data Breach
Texas ENT Specialists – Hacking/IT Incident Affects More Than 530,000 Individuals
The U.S. Department of Health and Human Services, Office for Civil Rights, Breach Portal, reflects that Texas ENT Specialists, a healthcare provider, reported a data breach of its network server.
The company’s “Notice of Security Incident” stated that “[o]n October 19, 2021, Texas ENT learned that files containing patient information were subject to unauthorized access during a data security incident. With assistance from a third-party cybersecurity firm, [Texas ENT] determined that unauthorized parties gained access to our computer systems and took copies of Texas ENT files between August 9, 2021 and August 15, 2021. [Texas ENT] carefully reviewed those files and determined they contained patient names, dates of birth, medical record numbers, and procedure codes used for billing purposes. A limited number of files also contained patient Social Security numbers. Importantly, there was no unauthorized access to Texas ENT’s electronic medical records system.” [Emphasis added.]
Have You Been Impacted by A Data Breach?
If so, please complete the form on the right or contact Kehoe Law Firm, P.C., [email protected], for a free, no-obligation evaluation of potential legal claims.
Examples of the type of relief sought by data privacy class actions, include, but are not limited to, reimbursement of identity theft losses and of out-of-pocket costs paid by data breach victims for protective measures such as credit monitoring services, credit reports, and credit freezes; compensation for time spent responding to the breach; imposition of credit monitoring services and identity theft insurance, paid for by the defendant company; and improvements to the defendant company’s data security systems.
Data privacy class actions are brought on a contingent-fee basis; thus, plaintiffs and the class members do not pay out-of-pocket attorney’s fees or litigation costs. Subject to court approval, attorney’s fees and litigation costs are derived from the recovery obtained for the class.
Dec 19, 2021 | Blog, Car Problems Car Complaints
Audi Q5 (2018-2022) & Audi SQ5 (2018-2022) Vehicle Recall Due To Gateway Control Module Shutdown Which Can Suddenly Reduce Power
Your vehicle MAY be involved in a safety recall which MAY create a safety risk for you or your passengers. If left unrepaired, a potential safety defect could lead to injury or even death. Safety defects must be repaired by a dealer at no cost to you. The following MAY APPLY to your vehicle if it is listed below. Please click on the National Highway Traffic Safety Administration (“NHTSA”) Recall ID Number below to learn more about the safety issue and the reason for the vehicle recall.
Manufacturer: Volkswagen Group of America, Inc.
Components: STRUCTURE, ELECTRICAL SYSTEM
Potential Number of Units Affected: 288,991
Summary & Remedy
Volkswagen Group of America, Inc. (“Audi”) is recalling certain 2021-2022 Q5 Sportback, SQ5 Sportback, 2018-2022 Q5, and SQ5 vehicles. A liquid spill in the rear seat, or water ingress from an insufficient body seam underneath the vehicle may allow liquid to penetrate the gateway control module, causing it to shutdown. A gateway control module shutdown will suddenly reduce engine power, increasing the risk of a crash.
Dealers will install a protective cover on the gateway control module and seal an underbody seam as necessary, free of charge. Owner notification letters are expected to be mailed February 24, 2022. Owners may contact Audi customer service at 1-800-253-2834. Audi’s number for this recall is 90S9. Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to nhtsa.gov.
What Is A Vehicle Recall?
When a manufacturer or the NHTSA determines that a vehicle creates an unreasonable risk to safety or fails to meet minimum safety standards, the manufacturer is required to fix that vehicle at no cost to the owner. The fix, or repair, can be accomplished by repairing, replacing, offering a refund (for equipment) or, in rare cases, repurchasing the car/vehicle.
What Should I Do If My Vehicle Is Included In This Recall?
If your vehicle is included in a specific recall, it is very important that you get it fixed as soon as possible given the potential danger to you and your passengers if it is not addressed. You should receive a separate letter in the mail from the vehicle manufacturer, notifying you of the recall and explaining when the remedy will be available, whom to contact to repair your vehicle, and to remind you that the repair will be done at no charge to you. If you believe your vehicle is included in the recall, but you do not receive a letter in the mail from the vehicle manufacturer, please call NHTSA’s Vehicle Safety Hotline at 1-888-327-4236, or contact your vehicle manufacturer or dealership.
For additional recall information, please click Vehicle Recall FAQs.
Source: U.S. Department of Transportation, National Highway Traffic Safety Administration
VEHICLE OWNERS AND LESSEES AFFECTED BY AUTOMOTIVE DEFECTS OR SAFETY RECALLS ARE ENCOURAGED TO CONTACT KEHOE LAW FIRM, P.C., [email protected], FOR A FREE, NO-OBLIGATION EVALUATION OF POTENTIAL LEGAL CLAIMS.
Dec 18, 2021 | Blog, Data Breach
Online Retailers Tackle Warehouse LLC, Running Warehouse LLC, Skate Warehouse LLC & Tennis Warehouse LLC Hacked – Customer Personal And Financial Data Information Stolen
The Office Of The Maine Attorney General’s online data breach notification portal reflects that 1,813,224 individuals, including Maine residents, were affected by an external system hacking data breach of four online sports equipment retail websites, which resulted in the acquisition of customer names or other personal identifiers in combination with financial account numbers, credit/debit card numbers (in combination with security code, access code, password or account PIN).
The data breach occurred on October 1, 2021, and was discovered on November 29, 2021.
Class Action Lawsuit Filed Against Wilderness Sports Warehouse, LLC, d/b/a Tackle Warehouse; Running Warehouse, LLC; Sports Warehouse, Inc., d/b/a Tennis Warehouse; & Skate Warehouse, LLC
On January 11, 2022, a class action lawsuit was filed in United States District Court for the Middle District of Georgia against the aforementioned online retailers for their alleged failure to properly secure and safeguard highly-valuable, protected Personally Identifiable Information (“PII”), including, without limitation, names, addresses, credit card and debit card numbers, expiration dates, and CV codes; alleged failure to comply with industry standards to protect information systems that contain PII; and alleged failure to provide adequate and prompt notice to Plaintiff and other Class Members that their PII had been accessed and compromised.
The complaint alleges that the named Defendants knew, or should have known, the importance of safeguarding the PII entrusted to Defendants and of the foreseeable consequences if its data security systems were breached. According to the complaint, the Defendants failed, however, to take adequate cyber security measures to prevent the data breach from occurring.
Have You Been Harmed By A Data Breach?
If so, please complete the form on the right or contact Kehoe Law Firm, P.C., [email protected], for a free, no-obligation evaluation of potential legal claims.
Examples of the type of relief sought by data privacy class actions, include, but are not limited to, reimbursement of identity theft losses and of out-of-pocket costs paid by data breach victims for protective measures such as credit monitoring services, credit reports, and credit freezes; compensation for time spent responding to the breach; imposition of credit monitoring services and identity theft insurance, paid for by the defendant company; and improvements to the defendant company’s data security systems.
Data privacy class actions are brought on a contingent-fee basis; thus, plaintiffs and the class members do not pay out-of-pocket attorney’s fees or litigation costs. Subject to court approval, attorney’s fees and litigation costs are derived from the recovery obtained for the class.
Dec 18, 2021 | Blog, Product Liability
P&G Aerosol Dry Conditioner Spray Products and Aerosol Dry Shampoo Spray Products Recalled Due To The Presence of Benzene Detected In Some Products
A December 17, 2021 FDA recall alert stated that Procter & Gamble (“P&G”) is recalling aerosol dry conditioner spray products and aerosol dry shampoo spray products from Pantene, Aussie, Herbal Essences, and Waterless in addition to previously discontinued aerosol dry shampoo products from Old Spice and Hair Food, due to the presence of benzene detected in some products.
Risk Statement & Recommendations
Benzene is classified as a human carcinogen. Exposure to benzene can occur by inhalation, orally, and through the skin and it can result in cancers including leukemia and blood cancer of the bone marrow and blood disorders which can be life-threatening. Based on exposure modeling and the cancer risk assessments published by the Environmental Protection Agency (“EPA”) (IRIS database), daily exposure to benzene in the recalled products at the levels detected in our testing would not be expected to cause adverse health consequences.
To date, Procter & Gamble has not received any reports of adverse events related to this recall and is conducting this recall out of an abundance of caution.
The FDA MedWatch alert recommends that consumers should stop using and appropriately discard the affected aerosol dry conditioner spray products and aerosol dry shampoo spray products.
To read P&G’s recall announcement, please click P&G Issues Voluntary Recall of Aerosol Dry Conditioner Spray Products and Aerosol Dry Shampoo Spray Products.
Source: FDA.gov; FDA Recalls, Market Withdrawals & Safety Alerts
