The Secure Times

An online forum of the ABA Section of Antitrust Law's Privacy and Information Security Committee

Federal Court Finds Standing for Security Breach Victims Fearing Identity Theft

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Citing a trend in data security breach litigation, the U.S. District Court for the District of Connecticut recently found that the fear of identity theft suffices to confer Article III standing on plaintiffs seeking civil damages in the Second Circuit.  Such fear will not, however, sustain negligence claims or claims made under state tort laws absent an allegation of actual harm.  Although the court in McLoughlin v. People’s United Bank Inc. found for the plaintiffs on the issue of subject matter jurisdiction, it ultimately granted the defendants’ motion to dismiss for failure to state a claim because there was no allegation of actual identity theft or other quantifiable harm.  More information on this case and recent holdings of similar effect are available here, here and here.


Author: ABA Antitrust

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