Standing Is Key Issue In Cyber Lawsuits

District Courts have traditionally dismissed consumer lawsuits for data breach on the grounds that plaintiffs could not allege or prove actual harm, a requirement for standing that rests on Clapper v. Amnesty International USA, a 2013 Supreme Court decision. Courts applying Clapper to data breach complaints have generally found that the damage frequently pleaded by the plaintiffs – the risk of future identity theft – is too speculative to support standing for a lawsuit. But lower court decisions in the Target and Neiman Marcus data breach cases have made it easier for consumer-plaintiffs to sue and succeed at the dismissal stage.