Welcome to the Future!
Federal Health and Human Services has pursued a string of health care data breach claims against health care providers.
Health care data is protected under HIPAA, and data breach issues could also fall under data security laws and regulations.
For refresher on the HHS settlement with Anchorage Community Mental Health Services, see Association of Corporate Counsel.
FTC and FCC are both regulating data breaches. FTC pursued an enforcement action against Wyndham Hotels, which then challenged the FTC’s regulatory authority.
In a case watched by many corporations, the courts said yes, the FTC has regulatory authority to take enforcment actions related to data breaches.
In late 2014, the U.S. Court of Appeals for the Third Circuit ordered the parties to mediation to save all parties time and money.
Posted indata privacy, legal trend, legislative trend
Another day, another retailer with a data breach. The National Association of Federal Credit Unions took the opportunity to call for clear data breach laws. Why? Without regulation every business that could possibly be related to a data breach is getting sued. It’s a class action gold mine. The Hill Data breaches and law suits go together like PB&J- pear, brie and jambon. Sony faces a class action lawsuit from former employees, who claim Sony had knolwedge of the data security weaknesses & did nothing to correct or protect confidential information. The data breach leak included personal & confidential employee information, and their lawsuit is limited to the leaking of the employee information.
Posted indata privacy, legal trend, legislative trend
Winter 2013 brought a large data breach for Target. Various lawsuits ensued. Financial institutions sued. Individuals sued. Target had sought to dismiss the suit brought by 5 financial institutions. The judge said, “NO,” in one of the first rulings of its kind allowing financial institutions to sue retailers for data breaches. Judge Magnuson also said, “imposing a duty on Target in this case will aid Minnesota’s policy of punishing companies that do not secure consumers’ c… Winter 2013 brought a large data breach for Target. Various lawsuits ensued. Financial institutions sued. Individuals sued. Target had sought to dismiss the suit brought by 5 financial institutions. The judge said no. Judge Magnuson also said, “imposing a duty on Target in this case will aid Minnesota’s policy of punishing companies that do not secure consumers’ credit- and debit-card information.” [
Posted inbanking, data privacy, legal trend, legislative trend, retail data breach
Multidistrict litigation found its new bread and butter in data breach lawsuits. The Credit Union National Association determined that the Home Depot data breach cost credit unions $60 million. $60 million hit includes the cost to reissue cards, deal with fraud and cover other costs. [Atlanta Business Journal] FTC’s data security enforcement powers are rooted in FTC Act. The Third Circuit Court of Appeals is considering an appeal of a ruling that affirmed the FTC’s data security enforcement powers. The Center for Democracy and Technology supports the FTC’s enforcement powers. [CDT] The 2014 Home Depot data breach litigation has raised the very tort issues that data breach legislation addresses- venue and consolidation. Whenever there are a lot of injuured parties, spread out throughout a state or country these issues arise. Data security breaches are the new pharmaceutical class action. [National Law Review] The phrase “if any” is giving lawsyers fodder with California’s new data security law. The issue is whether “if any” means credit monitoring must be offered or may be offered. As always, drafting matters. Read carefully. Consider propositions, conjunctions, and the placement of commas. It matters. [National Law Review]Data Security Regulation Needed Post Chick-fil-A Data Breach
Sony Pictures Data Breach Leads to Lawsuits
3 Articles on Banks and Credit Unions Suing Retailers After a Data Security Breach
Retailer has breach. 5 Banks sue. Litigation continues to Protect Public Policy. Tort Reform on Horizon.
39 Lawsuits from HomeDepot Data Breach
FTC Data Security Enforcement Powers
Data Security Litigation: Tort Reform
California Expanded New Data Security Law: Credit Monitoring Required?