Erie Insurance Faces Federal Class-Action Lawsuit
Erie Insurance is grappling with a federal class-action lawsuit following a major network outage that has left customers locked out of their online accounts. The civil complaint, filed on June 15 in federal court in Erie, claims the company failed to prevent a ransomware attack that allegedly compromised sensitive customer data.
The lawsuit comes after Erie Insurance confirmed a network outage on June 8 that affected all systems. The company serves customers in 12 states and Washington, D.C., but has not confirmed whether the outage was due to a ransomware attack or if any data was stolen. The lawsuit asserts that “on approximately June 7, 2025, a ransomware group accessed Defendant’s information network,” referring to Erie Insurance, though it provides no evidence of the attack.
The lawsuit claims Erie Insurance failed to implement basic cybersecurity measures, leaving personal data vulnerable to hackers. The plaintiff, Neal Plascencia, an Illinois resident and Erie Insurance customer, is seeking a court order to make the lawsuit a class action, representing a nationwide class of affected individuals.
The lawsuit seeks damages on behalf of affected individuals and requests that Erie Insurance strengthen its cybersecurity practices, provide lifetime identity theft protection to victims, and fully disclose the scope of the outage. Erie Insurance is represented by Edelson Lechtzin LLP, a class-action law firm based in Newtown, Pennsylvania.
Among its claims, the lawsuit argues that Erie Insurance had a legal duty to safeguard customer and employee data but failed to do so due to negligence. It also cites violations of the Federal Trade Commission Act, claiming Erie’s failure to follow FTC-recommended data protection practices constitutes an unfair business practice.
The plaintiff is seeking monetary damages, including actual, compensatory, and statutory damages, as well as punitive damages. The complaint also calls for restitution and disgorgement of profits Erie may have gained by underinvesting in cybersecurity. Additionally, the plaintiffs are asking the court to require Erie to cover the cost of at least three years of credit monitoring services for all affected individuals.
Erie Insurance has made “strong and steady progress” in recovering from the network outage, according to a statement from company spokesman Matthew Cummings on June 14. The company continues to work with law enforcement and leading cybersecurity experts to restore access for customers, agents, and employees.
The case is assigned to U.S. District Judge Susan Paradise Baxter, and Erie Insurance will have 21 days to respond to the lawsuit after being served.
