Data Breach

News & Analysis as of

Rocky Road Ahead for Ashley Madison after Widespread Damage Arising from Disclosure of Personal Information

Ashley Madison, the self-described “world's leading married dating service for discreet encounters” is the latest high-profile social media website to sustain a cyberattack. Established to provide an opportunity for married...more

That is SO last week - August 2015 #5

That infamous Ashley Madison data became searchable last week. Spouses, friends, and employers can now search the data to see if they know anyone who registered with the site. This development caused some to wonder if an...more

FTC v. Wyndham: The Litigation Goes On, But Other Lessons To Learn

It’s fair to say that the opinion by the Third Circuit Court of Appeals in FTC v. Wyndham was a set-back for Wyndham, but for businesses it may be just the right wake-up call....more

Federal Appeals Court Recognizes for the First Time the FTC’s Authority to Enforce Cybersecurity Practices

On August 24, 2015, the Third Circuit Court of Appeals issued a much-awaited decision in FTC v. Wyndham Worldwide Corporation, holding that the Federal Trade Commission (FTC) has authority to regulate “unfair” or “deceptive”...more

Ashley Madison Fallout: Class Actions, Pentagon investigation and easily searchable data

We previously reported that hackers The Impact Team had posted legitimate detailed information about 36 million adultery website Ashley Madison users. In the wake of the shocking posting of the data last week, two class...more

OPM Faces Another Class Action For The Theft Of Data Affecting 21.5 Million Current, Former And Prospective Government Employees

On August 14, 2015, a class action was filed in the United States District Court for the District of Columbia on behalf of about 21.5 million federal employees, contractors, and job applicants whose personal information was...more

Third Circuit Affirms FTC’s Authority to Regulate Data Security

On August 24, 2015, the Third Circuit affirmed U.S. District Court Judge Esther Salas’ April 2014 ruling in FTC v. Wyndham Worldwide Corp., et al. (“Wyndham”) that the FTC has the authority to regulate private companies’...more

Illinois Governor Vetoes Expansion of Breach Notice Requirements

A recent attempt by the Illinois legislature to significantly expand the scope of the Illinois data breach notification legislation was vetoed by Governor Rauner. As passed by the General Assembly, Illinois Senate Bill 1833...more

Data Privacy: Wyndham Hotel's Wake Up Call Should Be Your Own

On August 24, 2015, the United States Court of Appeals for the Third Circuit issued a precedential opinion in the matter of Federal Trade Commission v. Wyndham Worldwide Corporation, et al., No. 14-3514 (3d. Cir., Aug. 24,...more

Third Circuit affirms FTC’s jurisdiction over security practices in Wyndham case

In a strongly worded opinion, the Third Circuit Court of Appeals on Monday slammed Wyndham Worldwide Corporation’s arguments that the FTC did not have jurisdiction to enforce the security practices of businesses following a...more

Illinois Governor Vetoes Data Protection Bill; Suggests Revisions

Illinois Governor Bruce Rauner vetoed a bill amending the state’s data breach notification law on August 21, 2015, saying in a letter to the General Assembly that the bill “goes too far, imposing duplicative and burdensome...more

3rd Circuit Says: FTC Can Take Action Against Companies That Suffer Data Security Breaches

Companies can be fined by the federal government for failing to properly safeguard consumer data, according to a decision this week by Pennsylvania's federal appellate court....more

U.S. Appeals Court Upholds the FTC’s Authority to Police Cybersecurity Practices

In a highly anticipated and precedential opinion issued earlier this week, the Third Circuit Court of Appeals upheld the FTC’s authority to regulate corporate cybersecurity. The decision in Federal Trade Commission v Wyndham...more

Recent Appellate FTC Cybersecurity Ruling

On August 24, 2015, the United States Court of Appeals for the Third Circuit ruled that the Federal Trade Commission (hereinafter “FTC”) has the power under the FTC Act to police companies that fail to employ adequate...more

Landmarks - Summer 2015

Technologically savvy shoppers visiting brick-and-mortar retail locations are increasingly engaging in “showrooming,” a practice where consumers use the brick-and-mortar retail location to evaluate a product in person, yet...more

FTC as Data Security Cop Affirmed

The U.S. Court of Appeals for the Third Circuit this week affirmed the authority of the Federal Trade Commission (“FTC” or “Commission”) to enforce against companies that lack reasonable cybersecurity practices. Prior to...more

Third Circuit Not Hospitable to Wyndham, Upholds FTC’s Broad Powers to Regulate Cybersecurity

Over one year ago, our colleague Chris Hart argued that the District of New Jersey court’s decision in FTC v. Wyndham Worldwide Corp. et. al., No. 13-1887-ES, “point[ed] to the possibility that the FTC has potentially broad...more

The IRS Acknowledges Data Breach Worse Than Reported

On August 17, 2015, the Internal Revenue Service (“IRS”) announced that a breach of U.S. taxpayers’ personal information, first disclosed in May, was three times worse than previously thought. While initial reports indicated...more

OPM Breach Update

In response to the massive OPM data breach, the government has been searching for a vendor to provide identity protection services for the almost 22 million individuals affected. Bids were due last week, and the chosen vendor...more

IRS sued in putative class action for lax security

Following the IRS’ admission that its data breach was actually larger than it originally reported and caused fraudulent tax returns to be filed affecting over 330,000 taxpayers, the IRS was sued this week in a proposed class...more

Three more Darkode Hackers Prosecuted

We previously reported on the prosecutions of Darkode members. Three more members of the computer hacking forum Darkode have pled guilty to accessing protected computers without permission, and for violating the CANSPAM Act....more

Legal Insights on the Ashley Madison Hack: Part II

As more names emerge from the dark web data dump of Ashley Madison customers, lawyers around the globe have found a very willing group of would-be plaintiffs. Interestingly, all of these plaintiffs are named “Doe,” which must...more

Data Security Issues in the Workplace: It’s 10:00 p.m. – Do You Know Where Your Company’s Data Is?

It seems that not a day goes by without another massive data breach incident providing fodder for the morning headlines or the evening news. That should come as no surprise. According to key studies, the average company...more

The Ashley Madison Hack — Will It Cause Couples To Divorce?

Everyone is speculating that the Ashley Madison hack will mean an increase in business for divorce lawyers. This remains to be seen. However, the real question is what happens if your name appears on the list of users? And...more

Back to School – HIPAA 101

After a summer that saw major data breaches at the Office of Personnel Management and UCLA Health System, this fall is a great time to take your organization back to school on HIPAA compliance and data security. Here are...more

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