Earlier this year, we reported on the potential breeding ground for litigation under Illinois’ Biometric Information Privacy Act (“BIPA”). A recent decision from an Illinois state appellate panel on the different limitations periods that apply to BIPA provides guidance for companies faced with a BIPA lawsuit and the arguments they can make on a motion to dismiss.
Privacy & Data Security
English High Court Clarifies Appropriate Causes of Action in Data Claim Where Defendant Was a Victim of Third-Party Cyber-Attack
By Steven Baker, Vishnu V. Shankar & Julia Bihary on
In the recent and significant Warren v DSG Retail Ltd [2021] EWHC 2168 (QB) decision the High Court in England clarified the limited circumstances in which claims for breach of confidence, misuse of private information and the tort of negligence might be advanced by individuals for compensation for distress relating…
Circuit Split Deepens as Eleventh Circuit Rejects “Risk of Identity Theft” Theory of Standing in Data Breach Suit
By Melissa D. DiGrande on
On February 4, 2021, the Eleventh Circuit affirmed the dismissal of a customer’s proposed class action lawsuit against a Florida-based fast-food chain, PDQ, over a data breach. The three-judge panel rejected the argument that an increased risk of identity theft was a concrete injury sufficient to confer Article III standing, deepening a circuit split on this issue.
Lessons from Wengui v. Clark Hill: Structuring a Two Track Cyber Investigation
By Stephanie A. Diehl on
As the D.C. District Court in Wengui v. Clark Hill recently commented, “[m]alicious cyberattacks have unfortunately become a routine part of our modern digital world. So have the lawsuits that follow them….” The court’s decision in that case has added another data point to developing jurisprudence of the cyberattack landscape, specifically concerning the discoverability of post-breach forensics reports.
SolarWinds Government Data Breach Leads to Securities Action
By Brooke Gottlieb & Joseph Hartunian on
The massive data breach of the United States Commerce and Treasury Departments that has roiled the federal government has resulted in federal securities litigation. On January 4, 2021, Plaintiff-Shareholder Timothy Bremer filed a class action complaint against SolarWinds and SolarWinds’ corporate executives in the United States District Court for the…
A Timely Reason to Review Procedures for Risk Assessments and Vendor Contracts in Light of the SolarWinds Attack
As reported last week, a state-sponsored hacker may have breached multiple U.S. government networks through a widely-used software product offered by SolarWinds. The compromised product helps organizations manage their networks, servers and networked devices. The product is not only used by government agencies, but is widely used in both the…
Shareholder Seeks Second Look At Company Data Security Practices
By S. James Boumil, III on
On November 25, 2020, a shareholder of First American Financial Corporation (“First American”) filed suit against the company and its officers and directors over a massive data security breach that exposed hundreds of millions of sensitive customer records. The shareholder derivative action, filed by Norman Hollett in Delaware federal court, alleges breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, and multiple violations of the Securities Exchange Act of 1934, all relating to the failure to contain and timely disclose the breach.
Cybersecurity: A Guide to Preparing for and Responding to a Breach
A cyber breach can have serious legal, financial, and reputational consequences for a company, as described in our previous post. As such, cybersecurity threats must be treated as business risks, not just a potential IT problem. Senior management at a company should take the lead to ensure that the company is taking appropriate actions to protect itself against cyber risks. There are several steps that senior management can guide the company to take to prevent breaches from occurring and to mitigate the impact when they do occur.