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Financial Services Law Insights and Observations

9th Circuit denies online retailer’s petition for full panel review of decision on standing in data breach case

Courts Ninth Circuit Appellate Privacy/Cyber Risk & Data Security Data Breach Class Action U.S. Supreme Court

Courts

On April 20, the U.S. Court of Appeals for the 9th Circuit denied an online retailer’s request to have the full bench reconsider the court’s March 8 ruling, which ruling held that the increased risk of fraud or identity theft from a data breach gave consumers Article III standing to sue. As previously covered by InfoBytes, the underlying action results from a 2012 data breach affecting over 24 million shoppers. Previously, the three-judge panel held that the district court erred in dismissing claims brought by consumers who did not allege financial losses as a result of the data breach because, among other things, the stolen information provided hackers the “means to commit fraud or identity theft.” The online retailer appealed the decision, asking the full panel to review. The panel disagreed, upholding the previous decision that the plaintiffs sufficiently alleged the risk of future harm.

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