September 20, 2016
Partner Jeff Jacobson was quoted in the SC Magazine article “Sixth Circuit: Nationwide insurance co.'s breach victims have standing to sue.” The article discusses a class-action lawsuit filed by Galaria, and others against Nationwide Mutual Insurance Company for a security breach in 2012 that exposed the personal data of over a million policy holders. The Sixth Circuit found that the plaintiffs in the Nationwide case had pled a sufficient injury, the majority also reversed and remanded the lower court’s decision on the grounds that the plaintiffs had met the other two elements set out in the Supreme Court’s decision in Spokeo. “Not all data breach claims are created equal. Some plaintiffs' claims are only speculative, while others do a better job of alleging a serious risk that their personal data will be used fraudulently. What the Sixth Circuit found key in Galaria was that the defendant definitely had been hacked and that the plaintiff's personal data definitely had been stolen,” said Mr. Jacobson. “That was enough, the appeals court found, to satisfy the pleading requirements of a ‘concrete and particularized injury' that is ‘fairly traceable' to the defendant's alleged negligence,” he continued. “The court acknowledged that it might have reached a different result… had it been less clear that the hackers who intruded into the defendant's network actually obtained and were able to decipher the plaintiff's personal data.”
To read the full article, please click here.