Lyndell Johnson v. Cerebral, Inc.

On March 14, 2023, Lyndell Johnson (“Plaintiff”), as an individual and on behalf of all others similarly situated, represented by Jason M. Wucetich and Dimitrios V. Korovilas of Wucetich & Korovilas LLP, filed a class action lawsuit against Cerebral Inc. and Does 1-10 (collectively, “Defendants”), seeking injunctive relief, restitution, and damages for alleged negligent failure to implement and maintain reasonable cybersecurity procedures that resulted in alleged invasion of privacy and violation of the California Confidential Medical Information Act, the California Consumer Privacy Act, the California Customer Records Act, and California Unfair Competition Law. This case was filed in the U.S. District Court for the Central District of California, with Judges Stanley Blumenfeld, Jr., and Patricia Donahue presiding. 

In the complaint, the plaintiff alleged, “In connection with its online mental health services, CEREBRAL collects, stores, and processes sensitive personal data for thousands of individuals, including but not limited to its patients, employees and customers. In doing so, CEREBRAL retains sensitive information including, but not limited to, bank account information, health care related information, medications, test results, health questionnaire information, treatment histories, addresses, and social security numbers, among other things.”

Plaintiff further alleged that “CEREBRAL knew that it was a prime target for hackers and/or unauthorized third parties given the significant amount of sensitive personal information processed through its computer data and storage systems. CEREBRAL’s knowledge is underscored by the massive number of data breaches that have occurred in recent years. Despite knowing the prevalence of data breaches, CEREBRAL failed to prioritize data security by adopting reasonable data security measures to prevent and detect unauthorized access to its highly sensitive systems and databases.”

Plaintiff also alleged, “CEREBRAL has the resources to prevent an unlawful disclosure, but neglected to adequately invest in data security, despite the growing number of well-publicized breaches. CEREBRAL failed to undertake adequate analyses and testing of its own systems, training of its own personnel, and other data security measures as described herein to ensure vulnerabilities were avoided or remedied and that Plaintiff’s and class members’ data and sensitive personal health information were protected.”

The plaintiff then alleged, “As a direct and foreseeable result of CEREBRAL’s negligent failure to implement and maintain reasonable data security procedures and practices and the resultant unlawful disclosure, Plaintiff and all class members, have suffered harm in that their sensitive personal information has been exposed to unwanted third parties and they have an increased stress, risk, and fear of identity theft and fraud. This is not just a generalized anxiety of possible identify theft, privacy, or fraud concerns, but a concrete stress and risk of harm resulting from an actual breach and accompanied by actual instances of reported problems suspected to stem from the disclosure of their most sensitive health related information.”

Plaintiff presented eight claims for relief, including for alleged negligence, violation of the California Confidential Medical Information Act, violation of the California Consumer Privacy Act, violation of the California Customer Records Act, violation of California Unfair Competition Law, and invasion of privacy. 

In the prayer for relief, the plaintiff requested a judgment granting restitution, declaratory relief, and injunctive relief. Plaintiff also requested an award for punitive damages, exemplary damages, trebled damages, and disgorgement of ill-gotten gains along with pre- and post-judgment interest.

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