A former employee of global translations company, TransPerfect has filed a class action lawsuit in New York claiming that personal information wascompromised after a firm tied to the possible sale of a company took over its finances.
According to the suit, transferring the accounting and payroll departments of TransPerfect to Joel Mostrom of consulting firm Alvarez and Marsal, from TransPerfect’s CFO and COO contributed to a data breach that led to the theft of personal information.
[pdf-embedder url=”http://delawarebusinessnow.com/wp-content/uploads/2018/05/Sackin-Complaint.pdf” title=”Sackin Complaint”]
“For over a year, TransPerfect employees have warned that this court-appointed custodian with unlimited power to interfere would threaten the livelihood of the company and its employees,” said Chris Coffey, campaign manager for Citizens for a Pro-Business Delaware (CPBD). The group is largely made up of current and former employees of TransPerfect.
“Now, in light of the worst data incident in the company’s history, we are finally seeing cold hard proof that the custodian and the court put profits for friends and cronies over the well-being of the company and the employees. By cutting corners, hiring underqualified colleagues and charging whopping $1400 per hour for custodial costs instead of putting TransPerfect employees first, Custodian Pincus is demonstrating flagrant negligence and violating the rights of TransPerfect employees. We also appeal to Judge Bouchard to take a look at their hourly rates. They are out of whack with any other custodian in the state. This case is turning into a boondoggle” Coffey stated.
According to the suit, cyber-criminals posing as TransPerfect’s CFO requested 2015 W-2 form tax information and payroll information for the period ending in January 2015. The cyber-criminals requested names, direct deposit bank account numbers, routing numbers, and Social Security numbers for some thousands of current and past employees. Based on similar cases, the damages suffered by TransPerfect current and former employees could be claimed to exceed $48 million.
. Based on similar cases, the damages suffered by TransPerfect current and former employees could be claimed to exceed $48 million.
The Delaware Court of Chancery ordered an appointed custodian to sell TransPerfect after an internal dispute between company owners earlier last year.
TransPerfect Global, Inc. is a corporation organized under the laws of the state of Delaware with its principal place of business in New York City. TransPerfect employs over 4,000 people around the world.
Citizens for a Pro-Business Delaware and TransPerfect co-owner Phil Shawe have lost appeals in Chancery Court and the Delaware Supreme Court in attempting to overturn the sale process.
