Damages in Data Breach Litigation

Interesting post on the Cooley LLP’s cyber/data/privacy insights blog about recent litigation surrounding the huge Carefirst data breach (Attias.) The post talks about the court’s rejection of the argument that the plantiff’s suffered an “Injury-in-fact” and thus had standing to sue. They note;

“… there is a split between the courts on this issue. The courts disagree about whether the theft of personal information that exposes an individual to a heightened risk of identity theft is an “injury-in-fact” sufficient to confer standing under Article III. Some courts – the D.C., Third, Sixth, Seventh, Ninth, and Eleventh Circuits – believe (at a high level) that alleging only a heightened risk of future injury is enough to show an “injury-in-fact.” By contrast, other courts – the Second, Fourth, and Eighth Circuits – believe that plaintiffs must allege that the stolen personal data has been actually misused.”

Liability for data breaches is a hot topic these days (highlighted by the recent $230 million GDPR/data breach related fine of British Airways) and one that could have a large effect on Company valuations and transaction risks going forward.

Cheval M&A, Inc.

Author: Hillary Stiff is President of Cheval M&A. She has been an investment banker and CFO, completing M&A transactions and arranging financing for a number of companies including NTT/Verio, The Endurance International Group and Web.Com among many others. She has helped complete over 480 successful web hosting, ISP and related transactions and distributes a list of hosting and related companies that are for sale.

From the fine folks that brought you GDPR...

The EU has been working on a new copyright law that would make Internet providers liable for copyright infringements of their customers. The law could have a number of impacts including the need for providers to implement content filtering.

Despite opposition, the law seems to continue moving forward. It is unclear if this law will give more momentum to similar efforts that are underway in the US.