Data Breach

News & Analysis as of

Best in Law: Data Security and the Inside Job

If you are a business owner in the Inland Empire, what would you identify as the greatest threat to the security of your data? Is it hackers looking for credit-card numbers? Could it be foreign governments stealing industrial...more

District Court Grants Final Approval In Target Consumer Data Breach Class Action

On November 17, 2015, the federal district court overseeing the Target data breach litigation granted final approval to the consumer class action arising out of the 2013 Target data breach. The court certified, for final...more

IRS says taxpayers can’t sue it for data breach

The Internal Revenue Service recently requested a federal judge in the D.C. Circuit to dismiss a putative class action suit by taxpayers against the IRS for a data breach earlier this year that affected over 330,000...more

Is Your Privilege On Target? Lessons in Protecting Privilege from the Target Data Breach

The Target data breach has been the source of countless discussions of what to do and what not to do following a data breach. A recent ruling from the federal district court overseeing the consumer class action provides...more

Advertising Law - November 2015 #4

Sharing Is Caring? New Report Documents Apps Sharing User Data at High Rates - A new report has revealed that Apple and Android apps share information with third parties at high rates. Testing 55 of the most popular...more

Starwood Hotels hit with payment card malware attack

Last Friday (November 20, 2015), Starwood Hotels announced that it was hit with a payment card malware attack affecting 50 of its North American hotels. The president of Starwood Hotels Americas stated in a letter to...more

Tips for Protecting Your Company Against Cyberattacks

Cybersecurity has become, as it should, an extremely important topic on company boards’ agendas. The main question on everyone’s mind is: “How can we eliminate this problem?” The answer, unfortunately, is that you can’t....more

ALJ Dismisses FTC Data Security Claims Against LabMD Due to Lack of Actual or Likely Substantial Consumer Harm

On November 13, a Federal Trade Commission administrative law judge dismissed the FTC data security complaint against medical laboratory LabMD, potentially vindicating LabMD’s vigorous two-year struggle to deny the FTC’s...more

Highly Anticipated Ruling Curbs FTC’s Power to Bring Data-Breach Cases

Last week, after seven years of intense litigation, LabMD won its case against the Federal Trade Commission (“FTC”) resulting in an Administrative Law Judge setting a high bar for the FTC to bring data-breach lawsuits against...more

It’s (Not) Academic: Cybersecurity Is a Must for Universities and Academic Medical Centers

Cutting-edge research institutions need cutting-edge cybersecurity to protect their IP and critical personal and financial data. Universities hold vast repositories of valuable information, including student healthcare...more

ALJ Dismisses FTC Data Breach Action Against LabMD

In the first ruling rebuking the Federal Trade Commission’s cybersecurity enforcement efforts, the FTC’s head administrative law judge dismissed the FTC’s complaint against LabMD, Inc., on November 13, stating that...more

FTC Fails to Prove Case Against LabMD

Last Friday, Chief Administrative Law Judge D. Michael Chappell ruled that the FTC had failed to prove its case against LabMD and dismissed the FTC's Complaint. LabMD is one of only two companies (the other being Wyndham) to...more

Data Security Breaches: Are you covered?

Data security breaches can have a significant impact a company’s bottom line. While larger corporations may be able to sustain the financial hit, small to mid-size corporations can be significantly impacted from the financial...more

ALJ Issues Sweeping Decision Dismissing FTC’s Action Against LabMD

On November 13, 2015, the chief administrative law judge (“ALJ”) handling the Federal Trade Commission’s (“FTC” or “Commission”) complaint against LabMD Inc. (“LabMD”) dismissed the case in its entirety. As we previously...more

FCC Settles Data Breach Investigation with Cox Communications

Recently, the Enforcement Bureau of the Federal Communications Commission (FCC) entered into a settlement with Cox Communications (Cox) resolving an investigation into whether the cable operator failed to properly protect its...more

Beware of version 4.0 of Cryptowall ransomware

Security experts are warning that a new version of the notorious and nasty ransomware Cryptowall, dubbed Cryptowall 4.0, has hit the scene. The difference with the new version is that it is able to encrypt specific file...more

Lab tech indicted for identity theft

A lab tech working at a Las Vegas pediatric cardiology practice has been indicted on one count of illegal use and disclosure of patient health information and one count of aggravated identity theft. The lab tech had...more

LabMD vindicated in FTC row

We have been following the fight between LabMD and the FTC for years. It has been a story of high emotions, principles, standoffs, aggression, lawsuits, court decisions, Congressional hearings and accusations, all outlined in...more

Class Action Exposes Massive Data Leak Of Social Security and Drivers’ License Numbers of Every Registered Georgia Voter;...

Did the Georgia Secretary of State release the social security numbers, driver’s license numbers, and dates of birth of every registered Georgia voter? Those are the allegations first made by putative class representatives,...more

Retailers: Beware of Pitfalls in Your Card Payment Function

What card payment rules must a retailer operating in the United States follow? MS: When a merchant uses, transmits, stores or outsources the credit card function, it is subject to a number of rules in the U.S.,...more

FTC Jurisdiction in Data Security Regulation Potentially Limited in FTC v. LabMD

A November 13, 2015 decision from the Federal Trade Commission’s Chief Administrative Law Judge, D. Michael Chappell, calls into question FTC jurisdiction in the data privacy space. The case began when the FTC filed a...more

Cybersecurity & Nonprofits: A Matter of Time?

The ever increasing cyber-attacks and data breaches targeting the private sector and government agencies, and the increased focus on cybersecurity plans and preparedness, may seem like remote risks for nonprofit...more

Over 70 million prison phone records leaked

Securus Technologies (Securus), which provides phone services for many of the country’s prisons, experienced a breach of over 70 million phone records from over 37 states. The data leaked includes downloadable recordings of...more

NAIC Cybersecurity Bill of Rights: The Awkward New Guest at the Data Breach Law Party

On October 14, 2015, the NAIC’s Cybersecurity (EX) Task Force adopted a Cybersecurity Bill of Rights, an aspirational, well-intended document outlining the rights insurance consumers should (or could? or might? this point...more

Coverage for Business Interruption in Cyber Occurrences

Among the most critical cyber risks facing policyholders is the risk of business interruption in the event of a network breach or other cyber event. In our experience, the costs related to business interruption potentially...more

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