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Dealerships sue CDK Global after cyberattack causes financial hardships

CDK Global Faces Lawsuits Over Cyberattacks and Data Breach

CDK Global, a major software provider for auto dealerships, is facing a string of lawsuits over cyberattacks that disrupted their dealer management system. At least eight lawsuits have been filed by employees and customers of car dealerships that use CDK tools, alleging that the company failed to adequately protect customer data, leaving tens of thousands of people’s personal information vulnerable to exposure.

One of the plaintiffs, Omar Aviles, an employee of Asbury Automotive Group, has filed a proposed class-action suit against CDK Global. The lawsuit claims that CDK’s insufficiently protected computer systems led to the exposure of a trove of highly sensitive personal identifiable information, including Social Security numbers, employment history, driver’s license info, and financial account details.

CDK touts its cybersecurity capabilities on its website, promising to “stop cyberattacks in their tracks.” However, the lawsuits allege that the company had no effective means to prevent or mitigate breaches of its systems, leading to unrestricted access to clients’ personal data by cybercriminals.

The impact of the cyberattacks on the affected dealerships has been significant, with one dealer describing it as a disaster. Customers are reportedly unable to book deals, finance purchases, or access funds due to the disruption in operations caused by the breaches.

The lawsuits are seeking damages and calling for CDK to improve its protection of customer information. The dealers compare CDK’s response to the breaches to “a doctor stitching up a wound without first removing all the debris,” highlighting the need for a more thorough approach to cybersecurity.

CDK has not yet indicated if they will compensate affected dealerships for any financial losses or potential exposure to identity theft resulting from the cyberattacks. A spokesperson for the company has not responded to requests for comment on the lawsuits.

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