U.S. Court of Appeals Upholds FTC’s Authority to Regulate Cybersecurity
Posted on Aug 24, 2015 in Uncategorized | Comments Off on U.S. Court of Appeals Upholds FTC’s Authority to Regulate Cybersecurity
Today, the United States Court of Appeals for Third Circuit issued its opinion in FTC v. Wyndham Worldwide Corp. upholding the authority of the Federal Trade Commission to regulate corporate cybersecurity under Section 5(a) of the Federal Trade Commission Act, which prohibits businesses from engaging in “unfair or deceptive acts or practices.” This case was an interlocutory appeal from...
These Shoes Weren’t Made for Walking (and They Aren’t Too Good for Standing Either): Court Dismisses Post-Breach Case Against Zappos for Lack of Standing
Posted on Jun 8, 2015 in Uncategorized | Comments Off on These Shoes Weren’t Made for Walking (and They Aren’t Too Good for Standing Either): Court Dismisses Post-Breach Case Against Zappos for Lack of Standing
Last week yet another federal district court dismissed a post-data breach class action after concluding that the plaintiffs had not alleged any actual or imminent harm and, consequently, did not have standing to proceed. In re Zappos.com, Inc. Customer Data Security Breach Litig. MDL No. 2357, 12-cv-325 (D. Nev. June 1, 2015), arose out of a 2012 breach of Zappos’ servers, which...
Recent Data Breach Insurance Coverage Decision: Court Holds Insurer Not Obligated to Cover Damages from Lost Tapes Containing Personal Information When No Evidence Tapes Were Read
Posted on May 22, 2015 in Financial Services | Comments Off on Recent Data Breach Insurance Coverage Decision: Court Holds Insurer Not Obligated to Cover Damages from Lost Tapes Containing Personal Information When No Evidence Tapes Were Read
The Connecticut Supreme Court recently issued an opinion confirming that a Commercial General Liability (CGL) policy’s personal or advertising injury coverage did not provide coverage for damages resulting from lost data storage tapes where the tapes contained personal identifying information, but the party seeking coverage could not show that the tapes had been accessed. Recall Total...
Data Breach Class Action Plaintiffs Lack Standing
Posted on May 15, 2015 in Uncategorized | Comments Off on Data Breach Class Action Plaintiffs Lack Standing
A federal court in New Jersey is the latest in a series of courts to dismiss a putative data breach class action due to plaintiffs’ failure to adequately plead standing. In re Horizon Healthcare Services, Inc. Data Breach Litigation, No. 2:13-cv-07418-CCC-JBC (D.N.J. Mar. 31, 2015). This class action was brought against a health insurer that suffered a data breach through the theft of...
Defending Against Director & Officer Litigation
Posted on Feb 19, 2015 in Uncategorized | Comments Off on Defending Against Director & Officer Litigation
One form of ancillary litigation that has arisen out of data breaches is shareholder derivative lawsuits against companies that suffer a data breach. In one recent case, Palkon v. Holmes, No. 2:14-cv-01234-SRC-CLW (D.N.J. Oct. 20, 2014), a court dismissed such a shareholder derivative action. The claims arose out of a series of data breaches against the Wyndham Worldwide hotel chain....
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