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August 17, 2017

Inconsistent Data Breach Rulings Raises Chances of SCOTUS Consideration

Circuit courts appear to be split on whether the fear of damage from a potential data breach gives plaintiffs standing to bring a putative class action lawsuit. Experts say this raises the chances the U.S. Supreme Court would consider the issue, writes Business Insurance.

In June 2014, a Baltimore-based healthcare company’s computers were hacked, potentially exposing customers’ information. The D.C. District dismissed a class action over the breach, saying the plaintiffs did not present injury “nor a high enough likelihood of future injury.” The U.S. Court of Appeals for the D.C. Circuit, however, recently reinstated the case.

James C. Dugan of Wilkie Farr & Gallagher said the chances of data breach cases reaching the Supreme Court “is getting better because the circuit split is certainly growing here, and I think the court will ultimately probably hear this issue.”

 

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