Article III

News & Analysis as of

Hacked Class Can Sue Pre Injury

Last week, a three-judge panel of the 7th U.S. Circuit Court of Appeals held in Remijas v. Neiman Marcus Group LLC that individuals whose debit and credit card numbers were stolen by cyberthieves who had hacked into Neiman...more

Federal Court Dismisses Putative Class Action Accusing Life Insurer Of Failing To Disclose “Shadow Insurance”

Plaintiffs alleged that AXA Equitable Life Insurance Company violated New York insurance law prohibiting misrepresentations by insurers of their financial condition, because AXA had not disclosed “shadow transactions” in its...more

Does Free Credit Monitoring Do More "Harm" Than Good?

The Seventh Circuit reinstates the Neiman Marcus data breach class action lawsuit after finding that increased risk of future fraudulent charges and greater susceptibility to identify theft are sufficient for standing. ...more

To Stay or Not to Stay, That Is the Question Answered by the Second Circuit

Weighing in on an issue that has divided the federal courts of appeals, the Second Circuit has held that under the Federal Arbitration Act (FAA), a court that grants a motion to compel arbitration of all claims must stay the...more

Standing after Neale: Third Circuit Clarifies Jurisdictional Standing and Predominance Analysis in Consumer Class Actions

On July 22, 2015, in Joanne Neale, et al. v. Volvo Cars of North America, LLC, et al., the Court of Appeals for the Third Circuit vacated and remanded the United States District Court for the District of New Jersey’s decision...more

B&B Hardware: The Preclusive Effect of TTAB Decisions in Court

Introduction - Issue preclusion is a familiar concept to most practicing attorneys. Under this doctrine, “later courts should honor the first actual decision of a matter that has been actually litigated.” Charles Alan...more

Eighth Circuit: Purpose, Not Content, Determines TCPA Coverage of Calls as “Telemarketing”

Phone calls made to promote a movie constituted “telemarketing” under the Telephone Consumer Protection Act (TCPA) even though the two prerecorded messages left on the plaintiffs’ home phone line made no reference to the...more

Data Breach Plaintiffs Bag a Win on Standing - Seventh Circuit Finds Against Neiman Marcus

In what is sure to be a widely cited data breach standing decision, the U.S. Court of Appeals for the Seventh Circuit found that increased risk of future harms from a data breach are sufficient to confer standing to sue upon...more

Seventh Circuit Green Lights Data Breach Class Action Against Neiman Marcus

An increase in data breach class actions could be the result of a recent decision of the Seventh Circuit holding that allegations of future harm stemming from a data breach can establish Article III standing. The majority of...more

Insights from DRI Class Action Seminar 2015 – Part 2

Andrew Pincus, lead counsel in Spokeo, Inc. v. Robins (to be decided by the Supreme Court next Term, see my May 1, 2015 blog post), spoke on this subject. The question presented is whether a federal statute can confer...more

Seventh Circuit Allows Data Breach Class Action to Proceed Against Neiman Marcus, Despite Lack of Current Harm to Credit Card...

Data breaches are often followed by class action suits in which the affected individuals seek damages. Corporations defending against such suits have used a 2013 Supreme Court case, Clapper v. Amnesty International, 133 S....more

Barbarians at the Gate: Seventh Circuit Finds Article III Standing for Data Breach Class Actions

As a result of the Supreme Court’s decision in Clapper v. Amnesty Int’l USA, 133 S. Ct. 1138, 1147 (2013), data breach class actions were largely considered dead in the water. The overwhelming majority of courts, relying...more

Third Circuit Clarifies Article III Standing for Absent Class Members, Impact of Comcast

In a case of first impression in the Third Circuit, the Court of Appeals held that unnamed, putative class members are not required to establish standing under Article III of the U.S. Constitution. Rather, the Court held that...more

Remijas v. Neiman Marcus: Seventh Circuit Affords Broad Standing To Sue Over Consumer Data Breaches

When hackers breach a business’s systems, class actions are sure to follow. Often, however, these suits have faltered right out of the starting gate. Citing the Supreme Court’s 2013 decision in Clapper v. Amnesty...more

Seventh Circuit Concludes Plaintiffs Have Standing to Sue in Data Breach Class Action

On July 20, 2015, the U.S. Court of Appeals for the Seventh Circuit held in Remijas v. Neiman Marcus Group that injuries associated with resolving fraudulent charges and protecting oneself against future identity theft after...more

Seventh Circuit overturns Neiman Marcus data breach class action dismissal

In an unusual turn for recent data breach class action cases, the Seventh Circuit this week found that a likely threat of identity theft is sufficient for a proposed class to have standing to sue Nieman Marcus for a...more

4th Time is Not a Charm: Android Users Plead Themselves Out of Court

Finding that the Plaintiffs lacked Article III standing to pursue their case, Google, Inc. (“Google”) won dismissal of the Android users’ putative class action lawsuit after more than three years of litigation. In re Google...more

Change in the Prevailing Winds in Consumer Data Breach Cases?

Seventh Circuit Rules Consumers Have Standing to Sue in Neiman Marcus Payment Card Data Breach Case - In Remijas v. Neiman Marcus Group, LLC, the Seventh Circuit reversed a district court decision dismissing consumer...more

Dodd-Frank 180-Day “Deadline” For SEC to Take Action Not Really a Deadline After All

A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit recently ruled that Section 4E of the Securities Exchange Act of 1934, 15 U.S.C. § 78d-5(a)(1) – which provides that “[n]ot later than 180 days after the...more

Viewing Unsolicited Fax Not Required for TCPA Standing

The Sixth Circuit recently held that standing to sue under the Telephone Consumer Protection Act (TCPA) does not require the plaintiff to have printed, or even viewed, a fax advertisement that violates the TCPA. The Court...more

SCOTUS Decision in Spokeo Could Have Significant Impact on Data Breach Litigation

Following several significant data breaches in 2014 and 2015, including one reported just last week by the IRS, organizations of all types are on high alert to safeguard against data breaches and to prepare incident response...more

Data Breach Decisions Setting A Higher Threshold For Standing For Plaintiffs Do Not Mean Businesses Are Off The Hook

There are only two types of companies left in the United States: those that have been hacked and those that will be hacked. In the last year alone, forty-three percent (43%) of U.S. companies experienced a data breach,...more

Meet the New Sharif: Bankruptcy Court Jurisdiction in the Wake of Wellness International

The 1978 Bankruptcy Code was hailed as a comprehensive bankruptcy overhaul, designed, in part, to eliminate the uncertainty as to which matters could be handled by a bankruptcy referee depending on the outcome of a summary...more

The B&B Hardware Case and its Potential Impact on Trademark Litigation

Trademark disputes can often play out in a number of forums. Trademark disputes often start off in the marketplace, with a confused consumer, and then proceed to litigation in several tribunals including the Trademark Trial...more

Next Supreme Court Term Promises Significant Class Action Ruling

Next term, the U.S. Supreme Court will decide whether Congress has the power to grant jurisdiction to plaintiffs who have suffered no concrete harm by authorizing them to sue based solely on violations of federal statutes....more

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