A data breach at Generational Equity in February 2023 led to a $275,000 settlement after exposing sensitive data of more than 2,200 people. The security breach compromised critical personal information like names, Social Security numbers, driver’s license numbers, and credit card details. The affected individuals filed a class action lawsuit in Dallas County, Texas – Glass v. Generational Equity (Case No. DC-23-20315).
The lawsuit claimed that Generational Equity LLC didn’t have proper security measures to protect customer data, which made the cyber attack possible. Class members can now get up to $3,800 in compensation for regular losses. They can also claim an extra $3,500 for major losses such as identity theft damages or fraudulent charges that weren’t reimbursed. The lawsuit shows rising cybersecurity concerns and the company’s duty to protect user data. M&A advisory disputes like this one have become more common, with a 10% yearly increase.
What is the Generational Equity LLC Lawsuit?
The Generational Equity LLC lawsuit revolves around a leading mergers and acquisitions (M&A) advisory firm based in Richardson, Texas. Let’s take a closer look at the company’s background, the data breach details, and the resulting legal claims.
Overview of Generational Equity as a company
Generational Equity, a 19-year old M&A advisory firm founded in 2004, helps small and medium-sized business owners sell their companies or plan strategic exits. The company has grown to over 200 professionals with 15 office locations across the United States. The firm’s reputation stems from its comprehensive guidance through the merger process—from original business valuation to final deal closure. Their client base spans a variety of industries such as healthcare, technology, manufacturing, retail, automotive, energy, and financial services. The company has completed over 1,700 transactions and helped more than 100,000 business owners achieve successful exits.
Summary of the 2023 data breach incident
Generational Equity found that there was a major cybersecurity breach on February 16, 2023. Their investigation showed unauthorized actors had accessed their systems between February 15-16, 2023, which exposed sensitive client information. The breach compromised personal identifiable information of over 2,200 individuals, including their names, Social Security numbers, driver’s license numbers, and credit card details. The company sent notifications to affected individuals about the data compromise on October 5, 2023.
Why the lawsuit was filed
Linda Glass started a class action lawsuit against Generational Equity in Dallas County, Texas (Case No. DC-23-20315). The lawsuit claimed the company failed to protect sensitive client information with proper cybersecurity measures. The plaintiffs stated that the firm’s negligence caused financial hardships, including fraudulent charges, unauthorized transactions, and higher identity theft risks. They also argued that the company’s delayed response made potential damages worse. The whole ordeal ended up with a $275,000 settlement from the company, though they didn’t admit any wrongdoing.
Types of Legal Claims Filed Against Generational Equity
Legal claims against Generational Equity cover several categories. These claims show a pattern of alleged business practices that have caused client dissatisfaction and legal action.
Misrepresentation and deceptive sales tactics
Misleading sales practices stand out as the biggest complaint in legal filings against Generational Equity. About 40% of lawsuits contain allegations of misrepresentation. Clients say the firm creates unrealistic expectations about buyer interest and market potential. Court documents reveal complaints about high-pressure sales tactics to secure contracts that get pricey. Sales teams often promise quick sales that never happen. A plaintiff in a 2021 lawsuit put it simply: “They guaranteed buyers, but we got nothing”. These cases show how business owners feel financially and emotionally drained after using the company’s services.
Contract disputes and hidden fees
Contract-related disputes make up about 20% of legal claims against Generational Equity. Non-refundable retainers averaging $50,000 with unclear deliverables sit at the heart of these complaints. Success-based commissions add substantial costs but lack clear terms. The landmark case Salu v. Generational Equity (2013) revealed systemic transparency problems in the firm’s contracts. Exclusivity clauses often trap clients for years without results. Vague contract language continues to fuel legal disputes.
Negligence in data protection
A February 2023 data breach exposed serious security problems, affecting over 2,200 individuals. Legal documents show the company used outdated security software and failed to encrypt sensitive files. They lacked live threat detection systems and took too long to notify victims. The class action complaint pointed out missing industry-standard protections like multi-factor authentication, regular security audits, and intrusion detection systems.
Violation of data privacy laws
An eight-month delay in notifying affected individuals forms the life-blood of privacy violation claims. Legal filings in Linda Glass v. Generational Equity LLC (Case No. DC-23-20315) point to breaches of multiple regulations, especially the Texas Identity Theft Enforcement and Protection Act. The formal petition lists claims based on theories of negligence, negligence per se, breach of fiduciary duty, breach of implied contract, unjust enrichment, and intrusion upon seclusion. Generational Equity denies all liability for these claims but ended up agreeing to a settlement instead of fighting a long court battle.
Inside the 2023 Data Breach Settlement
The class action lawsuit against Generational Equity reached a formal settlement that set clear compensation terms for affected individuals. Court documents revealed this was due to a major cybersecurity failure.
Timeline of the breach and legal response
A data security breach happened faster than expected in early 2023. Unauthorized actors accessed Generational Equity’s systems on February 15-16, which led to an immediate investigation. The company detected the breach quickly but waited until October 5, 2023—nearly eight months later—to notify the affected individuals. The class action lawsuit Glass v. Generational Equity (Case No. DC-23-20315) was filed in Dallas County District Court during December 2023. The court approved the $275,000 settlement agreement by mid-2024. Final claim submissions are due by December 3, 2024.
Details of the $275,000 settlement
The company agreed to pay $275,000 to resolve all claims without admitting any fault or liability. We used the settlement fund to cover credit monitoring services, compensation for documented losses, and administrative costs. Credit monitoring costs get priority if total claims exceed the settlement amount. This means other claims might receive prorated payments.
Who is eligible and what they can claim
U.S. residents whose personal information was exposed in the February 2023 breach can claim compensation. The settlement provides several compensation categories:
- Ordinary Losses: Up to $300 to cover documented expenses like bank fees and communication charges
- Lost Time: $25/hour for up to three hours ($75 maximum)
- Extraordinary Losses: Up to $3,500 for documented financial harm like unreimbursed fraudulent charges
- Credit Monitoring: Two years of credit monitoring services with $1 million in identity theft insurance
How to file a claim and deadlines
You must submit claims through the official settlement website (generationalequitysettlement.com) or by mail. Your claim needs documentation—such as bank statements, credit reports, or receipts—that proves expenses or losses. Remember these deadlines: November 3, 2024 to exclude yourself or object, and December 3, 2024 to submit claims. The final approval hearing takes place on December 6, 2024.
Client Complaints and Public Reactions
The real story about Generational Equity emerges when you compare official ratings with what clients actually experience, going well beyond just legal proceedings.
Reddit discussions and online reviews
Reddit has become a hotspot for people criticizing Generational Equity. Users on r/investing and r/BusinessScams don’t trust the firm at all. One Reddit user called out their “$50,000 upfront fees with no guarantees” while another saw it as a “boiler room” scam because of broken M&A promises. Employee reviews tell two different stories – they like the training and benefits but point out “super high turnover” and how hard it is to earn commissions.
Common client frustrations
Money issues top the list of client complaints. The biggest problem is their non-refundable $50,000 retainer that comes with vague promises. Clients also face these ongoing problems:
- Commission structures that nobody really understands
- Hidden fees and tough contract terms
- Poor results after paying large amounts upfront
How referral networks spread awareness
Word gets around about Generational Equity lawsuits through different channels. Half come from client networks, 30% from online reviews, and social media accounts for the rest. The 2023 data breach case spread fast through word-of-mouth.
BBB ratings vs. actual experiences
Generational Equity holds an A+ Better Business Bureau rating, but this doesn’t match up with the many complaints they receive. The company says they fix problems quickly and claims that “1 out of every 1000 clients” complains. All the same, court documents show they’ve faced at least five major lawsuits since 2013.
Summary
The Generational Equity lawsuit shows how companies must handle corporate data security. Data breaches affect businesses in every sector, and this case expresses several concerning patterns. The company took eight months to notify affected customers, which left them vulnerable to identity theft. The $275,000 settlement gave victims some compensation but raised questions about covering long-term identity theft damage.
This lawsuit is just one of many complaints against Generational Equity. Clients have voiced their frustration about financial deals, contract terms, and misleading representation. These problems are systemic in multiple forums, even though the company maintains good official ratings.
M&A advisory disputes now include more cybersecurity issues than ever before. Companies that handle sensitive client data face legal risks when their security measures fail. The settlement terms now cover both regular and special losses, which shows how legal standards for data breaches have evolved.
Victims should check if they qualify for compensation before December 2024. The settlement recognizes different levels of damage, but payments might be reduced if too many people file claims.
The Generational Equity case proves that weak cybersecurity hurts both companies and clients. Business owners who need M&A advisory services should research their partners well. They need to study contract terms and security practices before sharing sensitive data. This case shows why businesses must focus on transparency, data protection, and honest communication in every industry.