Paychex Inc.

In 2024, Paychex Inc. faced a data breach that led to a proposed consumer class action lawsuit. The lead plaintiff, Colleen Waterman, alleged that Paychex negligently failed to protect her personal information, but the case was dismissed by Judge Joseph F. Leeson of the US District Court for the Eastern District of Pennsylvania. The judge ruled that Waterman did not demonstrate sufficient evidence linking her claimed injuries to the breach. While the lawsuit was dismissed without prejudice—allowing for an amended complaint—the incident highlights potential exposure of personal data. A separate lawsuit related to the same breach was voluntarily withdrawn by plaintiffs in August 2024. The breach did not result in confirmed data theft or financial harm to individuals, but it raised concerns over data security practices at Paychex, a major payroll and HR services provider. The lack of concrete evidence of stolen or misused data suggests the impact was limited to reputational and legal scrutiny rather than direct financial or operational damage.

Source: https://news.bloomberglaw.com/business-and-practice/paychex-escapes-proposed-class-action-over-2024-data-breach

TPRM report: https://www.rankiteo.com/company/paychex

"id": "pay1792317102325",
"linkid": "paychex",
"type": "Breach",
"date": "8/2024",
"severity": "50",
"impact": "2",
"explanation": "Attack limited on finance or reputation"

{'affected_entities': [{'industry': 'Payroll and Human Resources Services',
                        'location': 'United States',
                        'name': 'Paychex Inc.',
                        'type': 'Corporation'}],
 'data_breach': {'personally_identifiable_information': True,
                 'type_of_data_compromised': ['Personal Information']},
 'description': 'Paychex Inc. successfully defeated a proposed consumer class '
                'action over a 2024 data breach after a federal judge ruled '
                'that the lead plaintiff, Colleen Waterman, lacked standing to '
                'bring the suit. Judge Joseph F. Leeson of the US District '
                'Court for the Eastern District of Pennsylvania found that '
                'Waterman failed to demonstrate that her injuries were caused '
                'by Paychex’s allegedly negligent failure to protect her '
                'personal information. The case was dismissed without '
                'prejudice, allowing Waterman to file an amended complaint. A '
                'separate lawsuit over the breach was voluntarily dismissed by '
                'plaintiffs in August 2024.',
 'impact': {'customer_complaints': ['Class Action Lawsuit (Dismissed)',
                                    'Separate Lawsuit (Voluntarily Dismissed '
                                    'in August 2024)'],
            'data_compromised': ['Personal Information'],
            'legal_liabilities': ['Class Action Lawsuit Dismissal (Without '
                                  'Prejudice)',
                                  'Potential Amended Complaint']},
 'investigation_status': 'Ongoing (Potential Amended Complaint)',
 'references': [{'source': 'US District Court for the Eastern District of '
                           'Pennsylvania (Judge Joseph F. Leeson)'}],
 'regulatory_compliance': {'legal_actions': ['Class Action Lawsuit (Dismissed '
                                             'Without Prejudice)',
                                             'Separate Lawsuit (Voluntarily '
                                             'Dismissed)']},
 'response': {'communication_strategy': ['Legal Defense in Class Action '
                                         'Lawsuit']},
 'title': 'Paychex Inc. 2024 Data Breach Class Action Dismissal',
 'type': 'Data Breach'}