Sixth Circuit sides with plaintiffs in data breach class actions, says it would be ‘unreasonable’ for customers to wait for misuse
Mohammad Galaria and Anthony Hancox brought their class actions, in the U.S. District Court for the Southern District of Ohio and U.S. District Court for the District of Kansas, respectively, after hackers breached Nationwide Mutual Insurance Company’s computer network in October 2012 and stole their personal information, along with more than 1 million others.
A three-judge panel of the U.S. Court of Appeals for the Eighth Circuit this month affirmed a federal district court’s ruling, holding that the plaintiff’s allegation was, on its own, insufficient to establish Article III standing. Pointing to the U.S. Supreme Court’s ruling in Spokeo v. Robins, the panel said the plaintiff, a former Charter Communications customer, did not allege an injury in fact as required by Article III.
The Competitive Enterprise Institute’s Center for Class Action Fairness filed a petition with the nation’s highest court last week, asking for review of a settlement that awarded $5 million in fees to class counsel. CCAF argues the deal -- one of two reached over the sale of personal data reports to debt collectors -- is unfair to the class.