Privacy Business Torts

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Officers and Directors Spared Home Depot Data Breach Derivative Lawsuit

Officers and directors may breathe a temporary sigh of relief following the recent dismissal of the Home Depot data breach derivative case. Others will look to the facts for guidance. The complaint alleging the board had...more

“Directors’ Decisions Must Be Reasonable, not Perfect” Home Depot’s Shareholder Derivative Litigation Arising from Data Breach...

On November 30, 2016, a federal district court dismissed a shareholder derivative complaint against various current and former directors of Home Depot arising from the well-publicized data breach the company suffered between...more

Hints of a Narrowing of the FTC’s Section 5 Authority Under a Trump Presidency

The transition of power from President Barack Obama to President-Elect Donald Trump is underway. Although President-Elect Trump did not lay out specific policy prescriptions about data privacy or consumer protection during...more

LabMD Scores Early Win in FTC Appeal

The fight between the Federal Trade Commission and LabMD, the defunct medical testing lab, entered a new chapter late yesterday. In a 13-page ruling, the U.S. Court of Appeals for the Eleventh Circuit said that LabMD’s...more

Accountant and Attorney Liability Newsbrief - Fall 2016

Massachusetts recently amended its pay equity statute, which substantially enforces the protections of the Massachusetts Equal Pay Act. These changes will go into effect in July 2018. The prohibitions against discriminating...more

Federal Court Serves Up Big Win for Email Marketers in Spam Lawsuit

A recent decision in Silverstein v Keynetics, Inc. et al, by a federal judge in the Northern District of California has provided a glimmer of hope to email marketers that the seemingly limitless reach of California’s...more

New York A.G. Announces $100k Settlement Over Data Breach

On August 5, New York Attorney General Eric T. Schneiderman announced a settlement with Provision Supply, LLC d/b/a EZcontactsUSA.com, imposing $100,000 in penalties and ongoing obligations to maintain certain security...more

Well-Drafted Privacy Policy Saves the Day for GameStop

This Tuesday, the Eight Circuit Court of Appeals affirmed a Minnesota federal district court’s dismissal of a website user’s lawsuit and prospective class action involving the privacy policy and information sharing practices...more

The FTC Rules Against LabMD in On-Going Data Security Case

The lengthy saga between the Federal Trade Commission (FTC) and LabMD, Inc. reached another turning point on July 28, 2016. The FTC issued its unanimous Opinion in which it found that LabMD’s data security practices were...more

FTC Slaps Down ALJ’s Data Security Ruling in LabMD, Sets Broad Mandate for Protection of “Sensitive” Consumer Data

In a sweeping statement of its data security expectations for organizations that maintain consumer information, the Federal Trade Commission on Friday found that LabMD, the defunct medical testing lab, failed to employ...more

In re Nickelodeon Consumer Privacy Litigation: An IP Address is Not Always Personally Identifiable Information

What’s the Case About? In re Nickelodeon Consumer Privacy Litigation is a multi-district consolidated class action filed on behalf of children under the age of thirteen alleging that Viacom used child directed websites it...more

FTC Data Security Standards: Final Order in the ASUSTeK Case; No Mercy for LabMD

The Federal Trade Commission, continuing its quest to be the enforcer of consumer privacy rights, has come down hard this month on ASUSTeK and LabMD for their failure to have adequate data security standards. Because the FTC...more

Facebook v. Vachani – User Authorization Can Be Revoked By Service Providers

The U.S. Court of Appeals for the Ninth Circuit recently issued a decision that could have far reaching implications for the relationships between companies that provide online services, their customers or users, and third...more

Aveta And The Use Of Confidential Info In FCA Cases

In a recent case in the District of Puerto Rico, United States ex rel. Valdez v. Aveta Inc., et al., No. 15-cv-01140-CCC (D.P.R.), the former president of Puerto Rican-based managed health care provider Aveta Inc., Jose...more

New York Supreme Court Rules that Merchant Lacks Standing to Sue MasterCard over Data Security Breach Assessments; All Merchants...

On May 5, the Commercial Division of the New York Supreme Court for Westchester County dismissed the complaint in Jetro Holdings, LLC v. MasterCard International, Inc., in which Jetro, a leading food service wholesaler, had...more

Advertising Law - June 2016 #2

Dietary Supplement Makers Reach Deal With FTC - The makers of a dietary supplement touted to help users lose weight and aid with the symptoms of menopause settled with the Federal Trade Commission over charges that their...more

KitNipBox Sues Meowbox for Allegedly Hacking Website and Stealing Trade Secrets

Cat product service provider KitNipBox sued rival Meowbox in federal court in Washington alleging that Meowbox hacked into KitNipBox’s website to steal its trade secrets and confidential information and to disrupt its...more

Monitoring Employee Communications: A Brave New World

Over the last decade, communication via email and text has become a vital part of how many of us communicate in the workplace. In fact, most employees could not fathom the idea of performing their jobs without the use of...more

Valuable Information Security Lessons from the Olympus Mortgage vs. Guaranteed Rate Case

Late last month a jury awarded Mount Olympus Mortgage Company (MOMC) more than $25 million for their claims against Guaranteed Rate (Guaranteed), which alleged Guaranteed along with other former employees of MOMC illegally...more

FTC Settles with Data Brokers in Sale of Consumer Data Used for Illicit Purposes

On February 18, 2016, the U.S. Federal Trade Commission ("FTC") settled a dispute against LeapLab LLC ("LeapLab") and others ("Co-Defendants") claiming that they knowingly sold consumer social security numbers, bank account...more

CFPB’s First Data Security Action; Fines Online Platform Dwolla for Alleged Weak Security Practices

On March 2, the CFPB settled its first data security enforcement action against Iowa-based Dwolla Inc. Launched as a startup in 2009, Dwolla is an online payment platform that enables customers to transfer money directly...more

Wendy’s faces class action over data breach

We wrote about Wendy’s investigation into a data breach at its chain restaurants at the beginning of January, and now Wendy’s faces a class action over that same breach. The suit claims that Wendy’s negligently exposed...more

FTC Announces Settlement with ASUS over Insecure Routers and Cloud Services

Yesterday, the FTC announced that it had entered into a settlement agreement with Taiwan-based computer hardware manufacturer ASUSTeK Computer Inc., resolving allegations that the company failed to take reasonable steps to...more

Wyndham Settles with FTC

Last month, Wyndham Worldwide Corp. settled its lengthy civil case with the Federal Trade Commission. The suit began in 2012, when the FTC sued Wyndham and three of its subsidiaries, alleging three data breaches between 2008...more

Technology Blunder Lands Ex-Employee In Court

The Winston-Salem Journal (my hometown paper – yay!) reports that a company is suing a former employee in the North Carolina Business Court for breach of his confidentiality and non-compete agreements.* *The article...more

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