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Data Breach

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Severson & Werson Attorneys Publish a Litigator’s Look at What Constitutes a “Reasonable Security Procedure” Under the California Consumer Privacy Act

by Elizabeth C. Farrell |

The CCPA went live on January 1, 2020, creating a cause of action and potential liability of between $100 to $750 per person for a data breach deriving from a business' failure to maintain reasonable policies and procedures.  Unfortunately, the CCPA does not define the term "reasonable".  While compliance lawyers and consultants properly have been advising their clients to shore… Read More

District Court (Cal.) Certifies Injunctive Data Breach Class Against Facebook, but Denies Certification of Damages Class

by Scott J. Hyman |

In Adkins v. Facebook, Inc., No. C 18-05982-WHA, 2019 U.S. Dist. LEXIS 206271 (N.D. Cal. Nov. 26, 2019), Judge Alsup granted in part and denied in part a data breach class. This is a putative class action by plaintiff Stephen Adkins against defendant Facebook, Inc. Plaintiff asserts a claim for negligence based on Facebook's alleged faulty security practices in collecting… Read More

District Court (Cal.) Says California’s Data Breach Statute’s Element of “Failing to Implement Reasonable Security Procedures and Practices” Cannot Be Generally Pleaded

by Scott J. Hyman |

In Anderson v. Kimpton Hotel & Rest. Grp., LLC, No. 19-cv-01860-MMC, 2019 U.S. Dist. LEXIS 133869, at *13-14 (N.D. Cal. Aug. 8, 2019), Judge Chesney dismissed a data breach claim under California's data breach statute, Civil Code 1798.81.5.  The facts were as follows: In their complaint, plaintiffs [*2]  allege "Kimpton uses an online reservation system that facilitates the booking of hotel… Read More

District Court (Fla.) Says Data Breach Victims Meet Spokeo Art. III Standards

by Scott J. Hyman |

In re Brinker Data Incident Litig., No. 3:18-cv-686-J-32MCR, 2019 U.S. Dist. LEXIS 128573 (M.D. Fla. Aug. 1, 2019), Judge Corrigan allowed a data-breach class action to proceed.  Hackers accessed Brinker's data network and installed malware on point-of-sale ("POS") systems at many Chili's restaurants, which Brinker owns, develops, operates, and franchises.  Brinker publicly announced the breach on May 12, 2018, stating: ”On May… Read More

DC Cir. Says ID Theft Victims Have Art. III Standing

by Scott J. Hyman |

In AFGE v. OPM (In re United States OPM Data Sec. Breach Litig.), Nos. 17-5217, 17-5232, 2019 U.S. App. LEXIS 18609 (D.C. Cir. June 21, 2019), the Court of Appeals for the DC Circuit held that ID theft victims represented by their Union had article III standing.  The facts are rather dramatic. As its name suggests, the U.S. Office of… Read More

District Court (Cal.) Says Security Breach Leads to No Compensable Claim

by Scott J. Hyman |

In Razuki v. Caliber Home Loans, Inc., Case No. 17-CV-1718-LAB (WVG), 2018 WL 6018361 (S.D. Cal. Nov. 15, 2018), Judge Burns showed the difficulty that an identity theft victim has in seeking to make a claim arising out of a data breach, dismissing the Plaintiff’s claims with prejudice.  As to the negligence claim, the Court found an absence of appreciable harm.… Read More

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