If you haven’t been closely following, you may be of the mistaken view that without evidence of actual harm, consumer plaintiffs in federal cyber breach cases have no standing. While that may have been roughly correct in 2016, the story in 2018 is more complicated, and getting better for plaintiffs.
One of our cyber predictions for 2018 was that class action securities cases are going to become a major issue for companies involved in cyber events.
Large-scale data breaches often give rise to a variety of legal problems for the affected company, ranging from consumer class action litigation to congressional inquiries and state attorney general investigations. As we have discussed previously elsewhere, an additional emerging risk for breached companies is federal securities class action litigation… Continue Reading
Plaintiffs in data breach cases have tried many theories of recovery, including negligence, negligence per se, violations of state data protection statutes, violations of the Fair Credit Reporting Act, breach of fiduciary duty, and violations of the constitutional right to privacy, with mixed results.
Courts have rejected many of these claims, but plaintiffs and regulators are increasingly having success with allegations of unfair business practices. At the federal level, the Federal Trade Commission (“FTC”) has … Continue Reading