Los Angeles partner Adam Thurston wrote an article titled, “Plaintiffs Face Tough Initial Hurdles Bringing Data Breach Claims,” which was published in the Daily Journal on Monday, June 24. In the article, Adam discusses a rise in the risk of data breach litigation, specifically in California.
California’s data breach statue currently requires those who maintain personal information about their customers in unencrypted form. In the event of a data breach, the statue requires written notice to be sent to any California resident whose personal information is known or believed to have been acquired by an unauthorized person.
In many cases where personal information has been compromised, the individual will not have suffered an demonstrable harm, calling into question their standing to assert claims and their ability to prove damages caused by the breach.
Plaintiffs who have not suffered actual losses from the use of their personal information have had a difficult time surviving the pleading stage. Many courts have held that harm consisting purely of the nuisance of taking corrective action, or economic loss without personal injury or property damages, is not compensable under traditional tort theories.