Sovos Moves to Vacate CTO-15 for 'Judicial Economy' in MOVEit Data Breach Action
Sovos Compliance, a defendant in a privacy class action involving Progress Software’s MOVEit file transfer software data breach, moved to vacate conditional transfer order 15 (CTO-15) issued by the U.S. Judicial Panel on Multidistrict Litigation following mediation proceedings with plaintiffs,…
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said its Monday motion (docket 3083) before the panel. Sovos and plaintiffs in a previously consolidated class action reached an agreement in principle to resolve all claims against Sovos and its customers arising out of the MOVEit data breach, including claims brought against Sovos and Midland States Bank in Gorman v. Progress Software Corp., it said. Following the filing of Stadnik v. Sovos Compliance in U.S. District Court for Massachusetts Sept. 13, Zide v. Sovos Sept 14 in U.S. District Court for Central California, and Yenca v. Sovos in Massachusetts federal court Sept. 22, counsel for plaintiffs and Sovos began discussions for an early resolution on a class-wide basis of all claims against Sovos and its customers arising out of the incident, it said. Zide dropped Sovos as a defendant in her Oct. 5 first amended complaint, and Stadnik and Yenca filed an unopposed motion to consolidate their cases in the Massachusetts court; the court granted the motion Nov. 13. The Sovos “subclass” that Gorman seeks to represent is the same putative class that the plaintiffs in the Sovos consolidated action seek to represent, said the motion. Transfer of the Gorman action to the MDL would “frustrate rather than promote judicial economy and efficiency,” and it would cause the parties to expend “significantly more resources to litigate in the interim, despite the likelihood of resolution” through the Sovos consolidated action, it said.