Judge Jeffrey White of the Northern District of California recently dismissed a putative class action lawsuit in which plaintiffs claimed they faced an imminent threat of future of harm in the form of identity theft and fraud because their personal information, specifically their driver’s license numbers, may have been compromised
data breach
Paying the Ransom in Response to a Ransomware Attack can Sometimes Backfire
By Nolan Goldberg & Margaret Ukwu on
One of the key decisions that needs to be made in the aftermath of a successful ransomware attack is whether or not the victim organization can or should pay the ransom. Of course, there are many considerations that go into such a decision – for example, whether the payment is…
SolarWinds: A Lesson on How Companies Victimized by Data Breaches Can Quickly Become the Target of Litigation and Regulatory Investigations
In 2020, SolarWinds Corp., a company that provided information technology software to private and government entities, was the victim of a cybersecurity breach. Russian hackers are believed to have slipped malicious code into a SolarWinds software product called Orion, which was then used to infect, and in certain cases, compromise…
Held to Ransom: How Cyberattacks Can Become a Legal and Regulatory Odyssey for a Private Investment Fund
Where business-critical information or platforms are at stake, many commercial parties will seriously consider immediately paying the ransom hoping to regain control of operations, secure client data and avoid continued business disruption and negative publicity. However, businesses may wish to pause. Cyberattacks, by their very nature, know no borders and…
Noteworthy Trends in Privacy and Data Security
By Jeffrey Neuburger & Jonathan Mollod on
Reports of sophisticated cyberattacks and ransomware threats dominated 2021 headlines, along with evolving state data privacy laws in the absence of comprehensive federal data protection regulation. Cross-border data transfers between the EU and US still lack a clear, streamlined mechanism while national authorities continue to negotiate an EU-US Privacy Shield…
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 to a cyber-security breach where the proposed defendant was itself a victim of a third-party cyber-attack. The decision has made it harder to bring free standing/non-statutory cyber-security breach claims in England and Wales where the proposed defendant has not positively caused the breach, and has also brought into question how such claims may be funded going forward (particularly, via “After-the-Event insurance” (“ATE insurance”)).
INDEPTH: Data Protection & Privacy Laws 2021
By Ryan P. Blaney & Margaret A. Dale on
A heightened risk for cyberattacks and data breaches calls for companies to remain diligent as they navigate a patchwork of federal, state, local and sector-specific privacy and data protection laws, regulations and guidance. For Financier Worldwide, Margaret A. Dale and Ryan P. Blaney deliver commentary on the evolving landscape…
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,…