Identity Theft Data Breach

News & Analysis as of

What is reasonable? The emerging legalities of cybersecurity post-Wyndham

This month’s edition of the Advanced Cyber Security Center’s newletter includes my discussion of lessons to be learned from the Wyndham decision: Historically, security was an issue reserved in a back room for the IT...more

SEC Penalizes Investment Adviser over Inadequate Cyber-Risk Program Prior to Data Breach

On September 22, the SEC ordered a Missouri-based investment adviser to pay a $75,000 penalty, settling allegations that the investment adviser failed to implement required written cybersecurity policies and procedures prior...more

Data Breach Class Claims Survive Clapper

On appeal to the Seventh Circuit, a three-judge panel opinion written by Chief Judge Woods reversed the lower court. Remijas v. Neiman Marcus Group, LLC, No. 14-3122, 2015 WL 4394814, at *3 (7th Cir. July 20, 2015). The panel...more

Senate Legislation Seeks To Protect Taxpayer Data In Response To IRS Data Breach

On September 11, 2015, Senate Finance Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) introduced a bill aimed at combating identity theft and tax rebate fraud. The legislation comes as the Internal...more

Circuit Split on Standing in Data Breach Class Actions Survives Clapper

Last Friday, the Seventh Circuit Court of Appeals denied a retailer’s petition for rehearing en banc of a three-judge panel opinion holding that plaintiffs whose credit card information was stolen in a data breach had...more

Drinker Biddle Cyber Bulletin

Two data breaches at the Office of Personnel Management (OPM) affecting over 20 million Americans led to a bipartisan effort to push for legislation that would provide the Department of Homeland Security (DHS) with new...more

Advocate Health class action lawsuit trimmed

Last week, an Illinois judge dismissed with prejudice five of the six claims levied against Advocate Health Care in a consolidated case of ten cases filed against it following the data breach it experienced in July of 2013...more

32 alleged IRS hackers arrested

The federal government has arrested 32 members of the Insane Crip gang and charged them with 283 counts of criminal conspiracy, 299 counts of identity theft, 226 counts of grand theft and 58 counts of attempted theft through...more

It’s Official: FTC Has the Authority to Police Cybersecurity

In a resounding win for the Federal Trade Commission (“FTC”), the Third Circuit unanimously affirmed the FTC’s power to regulate cybersecurity under the unfairness prong of the FTC Act (15 U.S.C. §45). FTC v. Wyndham, Case,...more

OPM data breach update–$133 million contract awarded to vendor

The Office of Personnel Management (OPM) and the Defense Department announced this week that a Portland, OR based vendor has been selected to assist with breach notification and credit assistance for the almost 22 million...more

Sony: Stipulation Announces (but does not disclose) Employee Data Breach Class Settlement

This Is The End? - Settlement appears imminent in an employee class action against Sony Pictures Entertainment (“SPE”) arising from disclosure of their personally identifiable information (“PII”) in a massive data breach...more

IRS admits 334,000 victims of fraudulent tax refunds due to security flaws on website

Not only did the IRS lose a flash drive with 12,000 school worker’s Social Security numbers on it in Texas, it admitted on August 17th that its initial estimate that 110,000 taxpayers’ personal information was used to file...more

IRS declares identity protection services not taxable

The IRS announced last week that the value of identity theft protection services are not taxable and do not have to be included in gross income calculations for tax purposes. Identity theft continues to be the number one...more

A Deeper Dive: Data Security Incident? Don’t Panic

It’s 6 p.m. on a Friday and you get a call from your IT department. They have detected that an intruder has gained access to your company’s network. At this point, the headlines from the major data breaches of recent years...more

IRS Admits Security Breach More Extensive

Earlier this year, the IRS announced that identity thieves had been able to hack one of its computer databases and gain access to extremely sensitive data.  Back then, the IRS indicated that about 225,000 households had been...more

Seventh Circuit Finds Article III Standing for Data Breach Class Action Based on Allegations of Future Harm

In the wake of numerous data breach cases dismissed for lack of Article III standing based on the Supreme Court’s decision in Clapper v. Amnesty Int’l USA, 133 S. Ct. 1138, 1147 (2013), the Seventh Circuit Court of Appeals...more

Data processing company hit with class action lawsuit for data breach and Judge denies class certification the next day

Advanced Data Processing, Inc. and Intermedix Corp. were sued in federal court in Florida last week for violating the Health Insurance Portability and Accountability Act (HIPAA) for failing to protect the health information...more

Second class action suit filed against Medical Informatics

We previously reported that Medical Informatics Engineering, Inc. was sued over a data breach that occurred in May and affected over 4 million individuals. Thereafter, Indiana AG Gregory Zoeller advised all Hoosiers to freeze...more

Checking in on Target’s Derivative Litigation: 18 Months Later, Directors Remain Stuck in the Checkout Line

Everyone remembers the Target Corporation data breach, one of the worst in history. In late 2013, hackers forced their way into Target’s computer system, accessing the information of approximately 70 million customers,...more

Neiman Marcus files Petition for Rehearing En Banc

We previously reported on the Seventh Circuit’s reversal of the District Court’s dismissal of the data breach class action case against Neiman Marcus. On August 3, 2015, Neiman Marcus filed a Petition for Rehearing requesting...more

Neiman Case a Harbinger For Data Breach Cases? Not So Fast

Much has been said in the past couple weeks about the decision by Seventh Circuit Court of Appeals in the case of Remijas v. Neiman Marcus. Some have suggested that the ruling makes it easier to sue over data breaches, or...more

Seventh Circuit: Neiman Marcus Data Breach Victims Have Standing To Bring Class Action

The Seventh Circuit Court of Appeals decided on July 20, 2015, that individuals whose credit card information was exposed to hackers in the 2013 Neiman Marcus data breach have standing to sue the luxury department store in a...more

Neiman Marcus Chides Seventh Circuit Panel

Neiman Marcus Petition Claims that Seventh Circuit Decision Invents Harm to Find Standing to Bring Data Breach Claims - Retailer Neiman Marcus has filed a petition seeking en banc review by the entire Seventh Circuit of...more

NIST Issues Draft Guidance for Mobile Health Data

With health care breaches constantly on the rise, increasing access to electronic health records (EHRs) from mobile devices, and more prevalent “shadow” cloud use, health care organizations are getting a bit of help from the...more

Privacy & Cybersecurity Update - July 2015

Seventh Circuit Decision May Make It Easier for Class Action Plaintiffs to Establish Standing in Data Breach Cases - The Seventh Circuit has issued a decision that could make it much easier for class action plaintiffs to...more

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