Intercontinental Hotels Group data breach class action overview:
- Who: Intercontinental Hotels Group has been hit with a class action lawsuit by franchisees.
- Why: The franchisees claim the hotel giant was negligent in its cybersecurity, allowing hackers to disrupt the company’s booking platform.
- Where: The class action lawsuit was filed in a Georgia federal court.
Intercontinental Hotels Group (IHG) was negligent with its cybersecurity, allowing hackers to access the company’s network and disrupt functions including the online platform that guests use to reserve rooms, a new class action lawsuit filed by franchisees alleges.
The plaintiffs—Louisiana-based hotel operators Park 80 Hotels LLC, PL Hotels LLC and Mayur Patel as well as four other operators—filed the class action lawsuit against Intercontinental Hotels Group Sept. 15 in a Georgia federal court.
According to the lawsuit, for the second time in recent years, IHG has allowed a third-party actor to access their network and disrupt numerous functions including IHG Concerto, the online platform that guests use to reserve hotel rooms at any of the approximately 3,500 IHG-branded properties throughout the United States.
“Although IHG has not been forthcoming about the details, on or about September 5, 2022, its technology systems were subject to ‘unauthorized activity,’ which meant that its booking channels, reservations and customer care call centers and the IHG Help Desk were inoperable and inaccessible,” the lawsuit alleges.
“As a result, Plaintiffs and the class members lost significant revenue because guests were not able to make bookings online, access their IHG One Rewards account or contact Reservations & Customer Care.”
IHG consumer data compromised, lawsuit alleges
Although IHG has not publicly commented on whether customer data was impacted, independent reporting has revealed that certain consumer data has been compromised, the lawsuit states.
The plaintiffs claim the breach was the “inevitable result’ of IHG’s inadequate data security measures and lackadaisical approach to network security.
“Despite the well-publicized and ever-growing threat of cyberattacks, particularly in the hospitality industry, IHG refused to implement certain best practices, failed to upgrade critical security systems, ignored warnings about the vulnerability of its computer network and disregarded and/or violated applicable industry standards,” they say.
As a result, the plaintiffs lost revenue from bookings, loss of consumer goodwill, and additional use of employee time dealing with the fallout, including working with guests on cancellations, re-bookings and related issues, they say.
They are suing for negligence and unjust enrichment, and seeking certification of the class action, damages, fees, costs and a jury trial.
What do you think of the claims in this IHG data breach class action lawsuit? Let us know your thoughts in the comments!
Park 80 Hotels and the other plaintiffs are represented by MaryBeth V. Gibson and N. Nickolas Jackson of The Finley Firm PC, Andrew P. Bleiman, Mark Fishbein and Justin M. Klein of Marks & Klein LLP, and Justin E. Proper of White and Williams LLP.
The IHG data breach class action lawsuit is Park 80 Hotels LLC et al. v. Holiday Hospitality Franchising LLC et al., Case No. 1:22-cv-03709, in the U.S. District Court for the Northern District of Georgia.
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