Lawsuit seeks $5 million over Pentagon data breach - Stars and Stripes
Two Marines filed a $5 million class-action lawsuit against the Defense Department on Tuesday, alleging it failed to protect personal information and was slow to warn victims of a data breach at the Defense Manpower Data Center.
The lawsuit, filed in U.S. District Court in Washington, seeks to represent roughly 3 million military-connected people affected by the breach at the Defense Manpower Data Center.
The office maintains more than 60 million records of service members, civilian staff, contractors, family members, retirees and veterans.
The lawsuit alleges the Defense Department discovered the vulnerability in the office’s file-sharing system on July 16, 2026, but did not contact affected people until late September or early October.
Financial fraud and spam
The delay in notification allowed criminals to use the exposed information, including Social Security numbers, full names, birthdates and contact details, to steal from bank accounts.
Some, such as Mr. Edwards and Mr. Stampfli, have experienced actual fraud on their accounts and drastic increases in spam calls and emails.
Edwards, a California resident who enlisted in 2023, found $317 in fraudulent charges on his debit card, including one charge to the website PeopleFinder.
Stampfli, a New York resident who served from 2010 to 2021, found $271 in fraudulent charges to a restaurant supply store using his correct billing information but shipping to an address in Illinois.
He has also faced an onslaught of emails requesting confirmation for services he never signed up for.
Next steps
The plaintiffs are asking the court to certify the case as a proper class action and to award $5 million in damages.
Misuse of this information could continue for months or years, and the Defense Department has offered no assurance that all personal data or copies of data have been recovered or destroyed.
Defense officials declined to comment, citing pending litigation.
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