Data Breach Class Actions Shot Down For Lack Of Standing

Two consumer consolidated class actions have been dismissed by a Pennsylvania Court, which found that plaintiffs lacked standing. The suits claimed that Paytime, Inc. failed to protect sensitive personal and financial data, including names, social security numbers, and bank account information, all exposed after the company was hacked. However, the court said that, besides one incident in which an employee had to travel a greater distance while his security clearance was temporarily suspended, the plaintiffs did not prove “actual misuse of the hacked data or specifically allege how such misuse is certainly impending.” Allegations of increased risk to identity theft “are insufficient to allege harm,” the court wrote. However, Winston & Strawn attorneys warn that not all courts have followed this reasoning.