Current Turmoil and Future Risks in Resolving Data Breach Class Actions

Here’s an interesting post by Mark Olthoff of Polsinelli law firm discussing recent developments in class action lawsuits.  Here are some snippets:

First, an increasing number of data breach lawsuits are being filed in state court rather than in federal court. Several possible reasons exist for this development. For one, federal courts have limited subject matter jurisdiction and have generally taken a narrower view with respect to the issue of constitutional standing, particularly where plaintiffs have not pleaded actual existing harm. On the other hand, state courts ordinarily do not have the same strict subject matter jurisdiction requirements.


Second, two federal courts have recently certified classes in data breach cases. The U.S. District Court for the Southern District of Florida certified a nationwide negligence class (and a California statutory claim class) of consumers who alleged their personal and payment card information was stolen, finding the Rule 23 class certification requirements were met even though significant causation and damages questions existed.

Read more at JDSupra.

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