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Appeals Court Keeps Door Wide for Data Breach Class Actions

A panel of the First Circuit Court of Appeals has reversed a trial court’s ruling in a decision that leaves the door open to class-action lawsuits based on possible future harm from a data breach. So reports Claims Journal.

scale gc2e57f16a 640Finding that former customers of Injured Workers Pharmacy whose data was stolen by hackers may pursue a class action, the panel held that a worker’s claim of material risk of harm due to her data potentially being misused was injury enough to give her standing to sue.

“Plaintiffs face a real risk of misuse of their information following a data breach when their information is deliberately taken by thieves intending to use the information to their financial advantage," the panel wrote in its opinion.

Read the full article from Claims Journal.

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