Third Circuit Considers Injury-in-Fact Requirement for Data-Breach Class Actions

Natalie Garcia and Charles W. Mondora write:

Two class actions currently pending in the United States Court of Appeals for the Third Circuit, In re Horizon Healthcare Services Inc. Data Breach Litigation (D. N.J. Mar. 31, 2015), appeal docketed, No. 15-2309, and Storm v. Paytime, 90 F.Supp. 3d 359 (M.D. Pa. 2015), appeal docketed, No. 15-3690, are being monitored closely by cybersecurity attorneys and their corporate clients. In both of these data-breach cases, the plaintiffs are appealing the district court’s dismissal of their respective complaints because the district courts found that the plaintiffs lack Article III standing and suffered no injury-in-fact, relying heavily upon Reilly v. Ceridian Corp., 664 F.3d 38 (3d Cir. 2011), the controlling Third Circuit precedent.

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