Alan Claridge of Evansville, Ind., has filed a lawsuit against RockYou alleging that the company failed to protect its customers' data, enabling a hacker to access information on 32 million users last month.

"After being informed of the breach, RockYou admitted that customer data had been stored in an unencrypted database," writes CNET News' Elinor Mills. "The suit claims RockYou failed to protect sensitive user data including e-mail addresses, passwords, and login credentials for social-networking sites like Facebook and MySpace and was negligent in storing data in plaintext."

"RockYou also took at least one day to take action to fix the problem, and failed to notify customers of the breach in a reasonable time frame, not posting notice on its Web site or warning customers for 10 to 12 days after it was notified, the lawsuit alleges," Mills writes.

Click here to read the CNET News story.