GREENVILLE, Penn. — Bessemer System Federal Credit Union has filed a class action lawsuit in federal court against TruStage Financial Group that alleges that TruStage failed to implement and maintain adequate, industry-standard cybersecurity safeguards, culminating in the cybersecurity incident TruStage disclosed on July 15, 2026.
As the CU Daily reported here, TruStage said it took steps to shut down portions of its network while it investigates what the company described as a cybersecurity incident, emphasizing that the move was taken out of caution as it works to determine the scope of the event.
In a statement, the company said it voluntarily took its network offline after identifying suspicious activity, adding that it immediately activated its incident response protocols and is working with third-party cybersecurity specialists to investigate the matter. The company’s systems continue to be down as noted on its website.
According to the complaint, unauthorized third parties are believed to have accessed TruStage’s systems, and the resulting shutdown has disrupted services that credit unions depend on daily. The complaint alleges that normal business operations with TruStage have come to a halt.
Charles Nerko of NERKO PLLC, an attorney to the credit union and the proposed class, brought the lawsuit on behalf of a proposed nationwide class of credit unions and individuals affected by the breach, seeks damages, recovery of payments made for allegedly deficient services, reimbursement of breach-related expenses, and declaratory and equitable relief.
‘Most Powerful Tool’
“Protecting members is at the heart of everything a credit union does,” Bessemer System FCU CEO Joy Peterson said in a statement. “Pursuing a legal claim is the most powerful tool a credit union has to protect its members and obtain compensation from culpable third-party vendors.”
“The credit union movement is about member advocacy, and this case is about advocacy for the entire movement,” added Nerko in a statement. “Bessemer has stood up for credit unions before, bringing precedent-setting litigation against Fiserv, and it is an honor to represent the credit union again in another David v. Goliath battle. Every credit union is entitled to vendors whose security practices match their security promises. When a vendor’s performance causes harm, credit unions deserve compensation.”
As the CU Daily reported earlier, NERKO PLLC, one of the firms representing Bessemer, is a law firm founded to advocate for credit unions in vendor disputes. The firm offers a Third-Party Advantage® program it said helps credit unions respond and recover when vendors cause information security failures and other operational problems.
Nerko said the complaint contrasts the cybersecurity events outlined above with TruStage’s “security representations, including its privacy policy and the 2025 security practices materials in its due diligence center for credit unions, which represent that the company protects corporate information through administrative, physical, and technical safeguards.”
CU’s Prior Litigation
Bessemer System FCU previously brought a widely reported data security lawsuit against Fiserv in the U.S. District Court for the Western District of Pennsylvania that resulted in a confidential settlement in 2024. Later that year, the credit union issued a special dividend of $100 to each member of the credit union.
Nerko PLLC has since brought similar suits against Fiserv that also allege cybersecurity weaknesses at the company.
In addition to Nerko, the credit union and the proposed class are also represented by Lori G. Feldman of Hecht Partners LLP, and Kara A. Elgersma of Wexler Boley & Elgersma LLP.
The case is Bessemer System Federal Credit Union v. TruStage Financial Group, Inc., pending in the U.S. District Court for the Western District of Wisconsin.
TruStage Responds
In response to a query from the CU Daily, TruStage issued a statement saying, “TruStage is approaching this incident responsibly and transparently, with a focus on continuing to support business partners, customers and other stakeholders while response efforts continue. As a matter of policy, TruStage does not comment on pending litigation.”
19 Responses
This CU is $47MM and spends their time doing class action lawsuits? Must be a quick attempt at non-interest income
This $47MM credit union, which is anything other than anonymous, spends their time protecting their members’ information. We put our money where our mouth is. Litigation is never a “quick” attempt at anything.
The above comment is directly from Bessemer System Federal Credit Union.
I have a membership with true stage and was wondering how do I go about getting on the class action
agree it’s not quick. Long shot lawsuits take a lot of time. At such a small CU how many resources are spent on this stuff versus serving your member’s?
Nothing they are doing is transparent. Access to accounts have been lost for a month. No communications or mailings to any 401k account holders. No meaningful updates on any of their social media.
Hey, it’s the same anonymous troll that posts a nasty comment about small CUs on every article that I am on!
Small CUs are living “rent-free” in that angry persons’ head, LOL! Either that, or it is just a banker trying to stir the boat to divide the movement and pit large against small? We’ll never know.
-Doug Wadsworth
*stir the pot* I meant
Their press releases are well written. Thats the only part of the response being done with skill. From our point of view, nothing has changed since day 1. 401k deposits are in limbo and accumulating. They are providing no reasonable guidance other than platitudes. They have not even given assurance that their backup data is imtact.
I wanted to close on my new home and was going to use part of my 401k to do so, Now I have lost that opportunity due to their negligence. I also can’t help but wonder if their systems are held hostage for ransom.
Its now August 3rd, same thing had I not stopped payment immediately they’d still be getting free money for nothing… My Cu didn’t know this was ongoing until i contacted them. we are in Texas and the phone numbers they say can call are not working cannot reach anyone anywhere anytime it’s crazy town. Wheres the money?
Can CU members transfer life insurance policies to another vendor to be serviced under the Terms and Conditions stated when we responded/signed up to original offerings through our Credit Union affiliation?
I have had Life Insurance with TruStage for many years and for some reason I cannot pay my Life Insurance bill. Is this something that I have to worry about? No life insurance?????
TruStage refuse to except a payment for my life insurance. I have had TruStage Life insurance for many years. I need my life insurance. Whats going on????
TruStage is not excepting Life Insurance payment at this time. It has been some time since I have not been able to pay my lifeinsurance because a system hack at TruStage. When will they fix this. I need my life insurance???? Or is this a scam and after all these years all my payments have been lost.
My sister has passed away and I have no way to bury her. they is keeping her in the freezer until they get payment and i can not reach nobody and this is fixing to be a month i ned help.
Contacted TruStage to cancel my life insurance policy and was advised by the agent that it could not be processed. I previously worked for an international insurance company and when the computer/ electronic system went down there was a backup administrative system for maintaining and continuing client business. We are living in an age when AI and computer systems are not 100% reliable or error free and this sort of incident will increase. They can’t even access your business profile to process a manual cancellation. This speaks volumes about the unprepared state of businesses in America!
I have a claim number that I’ve been trying to collect my husband’s life policy but no one and I mean no one that I have searched on the web is telling anybody anything everybody’s in the dark nobody can talk to them what’s really going on better Business bureau needs to be involved in this at this point because it’s getting out of control
My husband passed away unexpectedly on July 12th, one day after the attack. I am on disability and am desperate for my insurance payout for a multitude of reasons. I had to borrow money for his funeral. Now my mortgage, car payment and other various payments are late. This is ridiculous and has dragged on far too long. I NEED HELP NOW!!!