New decisions from two federal courts may allow defendants in data breach class action litigation to breathe somewhat easier, following a run of adverse decisions last year. These decisions illustrate an emerging trend of district courts dismissing such privacy claims for lack of standing. Those decisions run directly counter to some court rulings last year that made it easier for plaintiffs to state a claim where their information has been compromised. These competing trends may bring data breach litigation to the U.S. Supreme Court in the near future.
Judicial decisions in 2015 brought plenty of bad news for companies that collect and store personally identifiable information of customers and employees. As noted in the November 2015 issue of Metropolitan Corporate Counsel, last year saw the Seventh Circuit rule that victims of data breaches may have their day in court even where they suffered no actual fraud losses as a result of their information being exposed. In that case against Neiman Marcus, the court found that efforts to prevent possible future fraud, such as credit monitoring, are sufficient as damages to provide plaintiffs with standing to sue. For the full article click here
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