Circuit Split No More: 2nd Circuit Clarifies Article III Standing in Data Breach Cases

Lissette C. Payne of Bradley writes:

While more states push forward on new privacy legislation statutorily granting consumers the right to litigate control of their personal information, federal courts continue to ponder how data breach injury fits traditional standing requirements. Previous to McMorris v. Carlos Lopez, McMorris v. Carlos Lopez & Assocs., LLCmany have argued there was a circuit split regarding whether an increased risk of identity theft resulting from a data breach is sufficient to establish Article III standing. However, in McMorris, the Second Circuit denied any confusion among its sister courts. Rather, the Second Circuit interestingly held that all courts have technically allowed for the possibility that an increased risk of identity theft could establish standing, but no plaintiff has yet hit the mark.

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