PaperlessPay Dodges Privacy, Negligence Claims Over Data Breach

PaperlessPay Corp. skirted claims stemming from a cyberattack that compromised employee information, as a federal judge in Florida ruled that the employees who brought the suit couldn’t prove that the data breach led to fraudulent insurance claims in their names.

Robin Allgood and David Collins filed the proposed class action in 2020, alleging that the third-party payroll company failed to guard their sensitive information, which allowed hackers to access their first and last names, addresses, payroll and withholding information, bank account numbers, and Social Security numbers.

On Tuesday, Judge Marcia Morales Howard of the U.S. District Court for the Middle ...