The reselling platform is making headlines once again. However, the latest news regarding the company relates to a class-action lawsuit about the 2019 data breach, according to Complex.
The data breach story, originally reported by TechCrunch, mentioned that StockX knew of the data breach in May, but didn’t give a detailed notice to its users till after. In addition to that, the platform issued an email recommending its users to update passwords and emails because of a “system update.”
A class-action lawsuit under the name of a minor was issued as a result. The lawsuit states the following:
As a result of StockX’s negligent, intentional, or unconscionable failure to adequately satisfy its contractual, statutory, and common-law obligations, Plaintiff’s PII was accessed, acquired, stolen, and re-sold by thieves for the express purpose of misusing Plaintiff’s data and causing further irreparable harm to Plaintiff’s personal, financial, reputational, and future well-being.
Josh Luber, StockX’s co-founder and the public face for the company, addressed part of the data breach saga on the Complex Sneakers podcast recently.
“We didn’t have enough information to make a full disclosure, to say everything that was going on,” Luber said, “but we knew that we needed to update everyone’s passwords and lock everything down ASAP.”
Luber recently announced that he will depart from the company and has his eyes set on another start-up venture.
Despite the lawsuit, the company argues that the ability to file a class-action lawsuit is void when they agreed to StockX’s terms of service. By agreeing to the terms, users have created a legal contract obligating them to bring claims through binding and final arbitration, according to StockX.
The plaintiffs in the case are seeking monetary compensation.
StockX has until September 30 to respond to the matter. Keep it locked here at Nice Kicks as the story continues to develop.