A two-pump convenience store in Wilmington, N.C. is suing the Colonial Pipeline Co. over its response to a ransomware attack in May that severely curtailed the supply of fuel on the U.S. East Coast. The station’s goal is to gather enough support from thousands of other fuel retailers to mount a class action lawsuit.
EZ Mart 1 alleges the Colonial Pipeline failed to adequately safeguard its computer systems, allowing hackers to successfully breach its security and conduct the ransomware attack on May 7.
The suit, which was filed in federal court in Georgia, claims the Colonial Pipeline company “intentionally, willfully, recklessly, or negligently” failed to take reasonable measures to safeguard its critical infrastructure. The result was monetary losses of more than $5 million and increased gas prices during the five days the pipeline was inactive.
The Colonial Pipeline funnels more than 100 million gallons daily of gasoline, jet fuel and diesel fuel for nearly 5,500 miles from the Gulf Coast northward to metro New York City. That’s nearly half of the fuel consumed on the East Coast.
Colonial reportedly paid a ransom of $4.4 million to a Russia-based hacker organization called DarkSide. The U.S. Department of Justice said earlier in June that it has recovered $2.3 million of the ransom, which had been paid in the form of bitcoin.
