Posted By Henry M. Sneath, Chair of the Cybersecurity and Data Breach Prevention and Response Team at Pittsburgh, Pa. law firm Picadio Sneath Miller & Norton, P.C. firstname.lastname@example.org or 412-288-4013
Target Corp. agrees to settle the 2013 data breach class claims prior to argument on class certification. Lead plaintiff’s counsel admitted the uphill battle he faced to obtain class certification due primarily to the difficulty in these consumer data breach cases of proving commonality of claims. This settlement, which still needs court approval for its proposed $10M payout, will not settle claims by commercial entities, but only individual consumer claims. Here is a good article with more detail from the National Law Journal. We will continue to follow this settlement and the handling of the commercial claims as this blog increases our focus on Cybersecurity and Data Breach Prevention and Response issues.
See this link to the NLJ for more info: http://tinyurl.com/kxwjrb9
by: Kelly A. Williams, a shareholder at Picadio Sneath Miller & Norton, P.C.
On March 3, 2015, the Third Circuit heard oral argument in FTC v. Wyndham Worldwide Corp. (No. 14-3514) on the novel issue of whether or not the Federal Trade Commission can sue a company for failing to properly secure consumer data. The case arose when the FTC sued Wyndham Worldwide Corporation, after Russian hackers broke into the Wyndham’s computer network and stole the credit card information for thousands of customers. The FTC filed the suit based on its authority under federal law to patrol unfair business practices. The Wyndham Hotel contends that its cybersecurity system is outside the realm of the FTC’s authority and that the FTC had not given notice about what the law would require with regard to corporate data security practices. The case reached the Third Circuit after the District for New Jersey denied the Wyndham’s motion to dismiss, and the Wyndham filed an interlocutory appeal. The panel’s, consisting of Judge Thomas Ambro and Senior Judges Anthony Scirica and Jane Roth, interest in the novel issue was apparent from the fact that oral argument lasted twice as long as the allotted time and the Court requested supplemental briefing.
See this article for additional information (subscription required). A recording of the oral argument can be found here at the 3rd Circuit’s website.