Science, Computers & Technology Privacy Civil Procedure

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Privacy & Cybersecurity Update - June 2015

In This Issue: - USA Freedom Act Brings Changes to Surveillance Program - Connecticut Enacts Bill Imposing Tighter Data Security Obligations - Pennsylvania Court Dismisses Data Breach Negligence...more

New Case Highlights Deep Hole in Cyber Insurance Policies

Insurance policies covering data breach liability began appearing roughly ten years ago. We noted then a troublesome provision in some forms that seemed to exclude coverage for the insured’s failure to maintain data security...more

California’s Eraser Law: What IP Attorneys and Owners Need to Know

Hector recently graduated from UC Berkeley and is anxious about his upcoming job interview. He is about to enter the adult world. But he has also got a bigger problem: When he was 17, he was not as wise as he is now at the...more

Advocate Health data breach class action suit dismissal upheld by Appellate Court

In August of 2013, four computers of Advocate Health and Hospitals Corporation (Advocate Health) were stolen from one of its offices. The computers contained the names, dates of birth, Social Security numbers, health...more

Adobe settles proposed class action data breach case with award of $1.18 million for plaintiffs’ attorneys

Adobe Systems, Inc. has agreed to settle the proposed class action lawsuit filed against it following the breach of its system in 2013. The breach compromised personal and payment card data of millions of its customers. There...more

Release of Personal Information Called ‘Unlawful’ and a ‘Threat to Privacy’ in Appeals Brief

After a federal district court dismissed a case filed against the EPA, thereby upholding the validity of the EPA's public release of personal information about farmers and their families, the American Farm Bureau Federation...more

Nevada Federal District Court Follows National Trend, Dismisses Data Breach Class Action for Lack of Standing

In granting a motion to dismiss a data breach putative class action lawsuit, the District of Nevada joined the majority of federal district courts in holding that plaintiffs whose personal information was stolen lack Article...more

District Court Dismisses Data Breach Class Action Against GameStop, Inc.

The US District Court for the District of Minnesota recently dismissed a data breach class action against GameStop, Inc. and Sunrise Publications, Inc. (d/b/a Game Informer) for lack of constitutional standing because the...more

LinkedIn settles class action suit

Last week, LinkedIn agreed to pay $13 million and change some of the site’s features to settle a class action lawsuit filed against it in 2013 alleging that it used the Add Connections feature to access users’ email contacts...more

European Court of Justice Dismisses Case Regarding Confidential Treatment of Information Submitted to EFSA

On June 3, 2015, the General Court of the European Court of Justice issued a ruling in Luxembourg Pamol (Cyprus) Ltd. and Luxembourg Industries Ltd. (Luxembourg) vs. European Commission regarding the publication of...more

Anonymous Information Actionable under the VPPA?

Technology has allowed consumers to use Apps and devices to stream their favorite content at the touch of a button. The popularity of these streaming Apps and devices has raised legal issues with regard to privacy....more

The USA FREEDOM Act Heightens the Need for Carriers to Examine their Data Retention Practices

On Tuesday, June 2, 2015, Barack Obama signed the USA FREEDOM Act into law. Among other reforms, the USA FREEDOM Act adopts a series of modifications to federal foreign intelligence gathering statutes and procedures to...more

Employees Who Suffer Only Economic Losses From a Data Breach Cannot Sustain a Negligence Claim Against Their Employer

Creating a private cause of action in negligence for data breaches could result in the filing each year of possibly hundreds of thousands of lawsuits by persons whose confidential information may be in the hands of third...more

Zappos proposed data breach class action litigation dismissed

Continuing the growing trend of dismissing data breach cases when there is no evidence of actual harm, the United States District Court for the District of Nevada last week dismissed a class action case filed against Zappos...more

The Devil in the “Cyber” Insurance Details

There’s a tempest amidst the recent spring shower of “cyber” insurance cases. It isn’t the Recall Total case reported the week before last, or the Travelers v. Federal Recovery Services case reported the week before. While...more

PA Judge Nixes Employees’ Negligence Claim for Data Security Breach

Red On May 28, 2015, in the first known ruling of its kind, a trial court in Allegheny County held that Pennsylvania law does not recognize a civil cause of action against companies for failing to secure its employees’...more

Pennsylvania Court Refuses to Create a Duty of Care to Protect Confidential Personal Data

On May 28, 2015, Judge R. Stanton Wettick, Jr. refused to create a new cause of action sounding in negligence allowing a claim for damages resulting from improper disclosure of confidential personal and financial...more

Court Dismisses Zappos Data Breach MDL Without Prejudice, Attributing Plaintiffs’ Alleged Harm “To The Realm of Speculation”

On June 1, 2015, a U.S. District Court in Nevada dismissed a consolidated class action against Zappos stemming from a data breach in January 2012. The court held that the plaintiffs lacked standing given their failure to...more

Lack of Typicality and Adequacy of Representation Prevents Class Certification in Health Care Data Breach

The opinion from the Philadelphia Court of Common Pleas reinforces lack of standing as a defense for companies facing data breach–related class actions. On March 25, the Philadelphia Court of Common Pleas provided...more

Judge tosses TCPA action, AOL not in violation

On May 29, 2015, U.S. District Court Judge Ronald M. Whyte tossed out a Telephone Consumer Protection Act (TCPA) claim against AOL, Inc. (AOL) because he found that the TCPA regulations did not apply to the messages received...more

Target and MasterCard settlement rejected

We previously reported on the efforts of Target to settle claims made by MasterCard and its issuers as a result of the infamous Target data breach. In order for the settlement of $19 million to reimburse banks and credit...more

Home Depot Moves to Dismiss Consumer Data Breach Claims for Lack of Standing

Home Depot has staked its defense of consumer claims arising from the 2014 theft of payment card data from the home improvement retailer on the asserted absence of injuries sufficient to confer standing to sue. Because...more

FCC Chairman Releases Proposed TCPA Declaratory Rulings

Federal Communications Commission (FCC) Chairman Tom Wheeler has issued a fact sheet describing his proposed declaratory rulings on various issues involving the FCC’s interpretation of the Telephone Consumer Protection Act...more

Think your Cellphone Usage is Private? Think Again

In a closely-watched case out of Miami, the Eleventh Circuit Court of Appeals redefined the zone of privacy for cell phone users. As the Tech World was focused on Miami for the second annual eMerge conference, the court...more

Connecticut Supreme Court’s Insurer-Friendly Decision on Data Breach Incident

On January 27, 2014, the Sedgwick Insurance Law Blog posted the following summary entitled, “ Highway Data Dump – Who are You Going to Call to Recover $6 Million?,” addressing the appellate decision in Recall Total Info....more

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