Alacrity Solutions Group, LLC has been named in three notable lawsuits in recent years: a consumer data breach class action tied to a 2021 ransomware attack that ended in a closed settlement, a California wage-and-hour case now pending before the state Supreme Court, and a breach-of-contract suit by Pinnacle Bank that was dismissed. Here is what each Alacrity Solutions lawsuit involved and where it stands.
The 2021 Data Breach Class Action
Between March 1 and March 3, 2021, unauthorized parties accessed Alacrity’s computer networks in what the company later described as a ransomware attack. Names and Social Security numbers of individuals in California, Montana, Massachusetts, Vermont, and other states were exposed.1ClassAction.org. Smith v. Alacrity Solutions Group, LLC Complaint The total number of people affected was never publicly disclosed.
Alacrity discovered the intrusion on March 3, 2021, but did not finish reviewing the compromised data until February 22, 2022. Notification letters went out to affected individuals in March and April 2022, more than a year after the attack.1ClassAction.org. Smith v. Alacrity Solutions Group, LLC Complaint The company offered 12 months of credit monitoring through Equifax, though a template letter sent to Massachusetts residents referenced 24 months.2Commonwealth of Massachusetts. Data Breach Number 26216 – Alacrity Solutions Group, LLC
In May 2022, Aldreamer Smith filed a class action in the U.S. District Court for the District of Delaware, Smith v. Alacrity Solutions Group, LLC (Case No. 1:22-cv-00655). The complaint alleged Alacrity failed to use adequate cybersecurity measures such as firewalls, encryption, and access controls, unreasonably delayed notification, and offered inadequate remediation. Claims included negligence, breach of implied contract, breach of fiduciary duty, unjust enrichment, and violations of Indiana consumer protection statutes.1ClassAction.org. Smith v. Alacrity Solutions Group, LLC Complaint
A related state case, Bailey, et al. v. Alacrity Solutions Group LLC (Case No. 29D03-2204-PL-002383), was filed in Indiana Superior Court in Hamilton County and produced the class-wide settlement. Alacrity paid an undisclosed sum without admitting wrongdoing.3Top Class Actions. Alacrity Solutions Group Data Breach Class Action Settlement
What the Settlement Paid
Eligible class members could claim up to $4,000 for documented breach-related expenses, including bank fees, fraudulent charges, credit costs, and professional fees, plus up to three hours of lost time reimbursed at $20 per hour. A California subclass was entitled to an additional $100. All class members could also enroll in two years of identity theft protection and credit monitoring.3Top Class Actions. Alacrity Solutions Group Data Breach Class Action Settlement
RG/2 Claims Administration LLC handled claims. The filing deadline was June 22, 2023, and the final approval hearing was scheduled for June 23, 2023. The settlement is closed and no new claims can be filed. Plaintiffs were represented by Gary Klinger of Milberg Coleman Bryson Phillips Grossman PLLC, and Alacrity was defended by Christopher G. Dean of McDonald Hopkins LLC.3Top Class Actions. Alacrity Solutions Group Data Breach Class Action Settlement
Williams v. Alacrity Solutions: The PAGA Employment Case
Corbin Williams, a former insurance adjuster, sued Alacrity in California over alleged Labor Code violations including unpaid overtime and inaccurate wage statements. He left the company in January 2022 but did not notify the California Labor and Workforce Development Agency of his claims until March 7, 2023, and filed suit three days later.4FindLaw. Williams v. Alacrity Solutions Group, LLC
Williams did not seek penalties for himself. He brought his case exclusively under the Private Attorneys General Act on behalf of the state and other current and former Alacrity employees. PAGA carries a one-year statute of limitations, and because more than a year had passed between his last day and his agency notice, the trial court sustained Alacrity’s demurrer and dismissed the case without leave to amend.4FindLaw. Williams v. Alacrity Solutions Group, LLC
The Court of Appeal Ruling
On April 22, 2025, the California Court of Appeal for the Second District, Division Five, affirmed the dismissal in a published opinion (Case No. B335445). Presiding Justice Hoffstadt, joined by Justices Moor and Kim, held that a PAGA plaintiff must have a timely individual claim to maintain a representative action. Because Williams’s own claims were time-barred, he could not sue solely on behalf of other employees.4FindLaw. Williams v. Alacrity Solutions Group, LLC
The court rejected what it called “headless” PAGA claims, meaning suits where the named plaintiff seeks penalties only for other workers while lacking a viable claim of their own. The panel reasoned that permitting such suits would let “professional PAGA plaintiffs” and trial attorneys pursue stale claims, undermining the statute’s purpose. The opinion disagreed with the earlier ruling in Johnson v. Maxim Healthcare Services, Inc. (2021), which had taken a more permissive view.4FindLaw. Williams v. Alacrity Solutions Group, LLC
California Supreme Court Review
The Williams decision created a split among California’s appellate districts. The Second District rejected headless PAGA claims; the Fourth and Fifth Districts allowed them in separate cases around the same time.5Dorsey & Whitney LLP. Evolving PAGA Landscape The California Supreme Court granted review of Williams on July 9, 2025 (Case No. S291199), and has deferred briefing pending its decision in Leeper v. Shipt, Inc. (S289305). Leeper addresses whether every PAGA action necessarily includes both individual and non-individual claims regardless of what the complaint says, and whether a plaintiff can bring only a non-individual PAGA action.6GMSR. Williams v. Alacrity Solutions Group, LLC – S291199
The 2024 PAGA reforms (AB 2288 and SB 92), which took effect in June 2024, require that employees pursue penalties only for violations they personally experienced. Williams and the other cases in the appellate split involve pre-reform claims, so the statutory rule going forward is separate from what the Supreme Court decides here.5Dorsey & Whitney LLP. Evolving PAGA Landscape
Pinnacle Bank Breach of Contract Suit
In March 2025, Pinnacle Bank sued Alacrity for breach of contract in the U.S. District Court for the Eastern District of California, Pinnacle Bank v. Alacrity Solutions Group, LLC (Case No. 2:25-cv-00774). The court dismissed the claims without leave to amend in November 2025. Pinnacle Bank appealed to the Ninth Circuit, and that appeal was dismissed in March 2026.7PACER Monitor. Pinnacle Bank v. Alacrity Solutions Group, LLC
Who Alacrity Solutions Is
Alacrity Solutions Group, LLC describes itself as a leading independent provider of insurance claims management services in North America. Headquartered in Fishers, Indiana, it serves national and regional insurance carriers, managing general agents, third-party administrators, self-insured corporations, and government entities. Its work covers property, auto, and casualty claims adjustment, staffing, temporary housing, managed repair networks, and subrogation recovery.8Alacrity Solutions. About Alacrity Solutions