Malware-infected servers of a Baltimore hospital system, LifeBridge, may have affected more than half a million patient records. LifeBridge reports in a statement on its website that it discovered malware on the servers that host electronic medical records as well as patient registration and billing systems. The provider’s investigation determined that an unauthorized person accessed
Uber Catches Break in Data Breach Class Action
Uber suffered a data breach in 2014 resulting in the compromise of more than 50,000 drivers’ personal information, including back account and social security numbers. Drivers brought a class action suit in federal court in the U.S. District Court for the Northern District of California. On May 10, a judge tossed the suit for a third time for lack of standing because the two named plaintiffs failed to allege that they suffered an injury in fact.
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Canada Releases New Data Breach Regulations
In a recent post, we discussed the Canadian Cabinet’s announcement that Canada’s new data breach regulations go into effect on November 1, 2018. Despite announcing the effective date, Canada had not yet finalized these regulations. However, on April 18, 2018, Canada unveiled the Breach of Security Safeguard Regulations: SOR/2018-64 (“Regulations”).
To highlight some of the finer points, in order to trigger notification requirements, the Regulations require organizations to determine if a data breach poses a “real risk of significant harm” to any individual had their information accessed in the breach. If an organization meets this harm threshold, then the affected organization must notify the Privacy Commissioner of Canada, as well as the affected individuals. …
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Uber Goes 0-2 in Data Breach Notifications
In August, 2017, the Federal Trade Commission (“FTC”) proposed a settlement agreement with Uber stemming from its investigation of a 2014 data breach due to Uber’s “unreasonable security practices”. The lengthy investigation found that Uber’s employees were accessing customer’s personal information, and that there were security lapses in Uber’s third-party cloud storage service. That settlement agreement required Uber to implement a “comprehensive privacy program”; however, the agreement was withdrawn by the FTC and amended recently. Why, you ask? Uber experienced a second data breach in 2016, while the investigation from the 2014 breach was well underway. The 2016 breach was a result of those same security lapses in the third-party cloud storage service and Uber waited over one year to report that second breach. Uber’s handling of the second breach continued its trail of misconduct, clearly demonstrating that the company had not learned its lesson.
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And Alabama Makes 50
On March 28, Alabama’s governor signed into law a data breach notification law. It is the last state in the country to do so, closely trailing South Dakota. Fifteen years ago, California was the first state to enact a data breach notification law. The Alabama law applies to electronically stored “sensitive personally identifying…
South Dakota is the 49th State to Enact a Breach Notification Law
Yesterday, South Dakota’s Governor signed into law “An Act to provide for the notification related to a breach of certain data and to provide a penalty therefor.” Under the Act, when a “breach of system security” involves personal or protected information, the holder of the information must notify affected residents within 60 days and, if…
Former Equifax Chief Information Officer Charged With Insider Trading
The Equifax data breach saga continues, this time with civil and criminal charges for insider trading lodged against Jun Ying, Equifax’s former Chief Information Officer of its U.S. Information Solutions business unit. The criminal indictment pursued by federal prosecutors and the civil complaint filed by the Securities and Exchange Commission both allege that Ying exercised…
The Standing Struggle in Data Breach Litigation Continues
Two courts. Two days. Two different results. On March 7, on remand from the U.S. Court of Appeals for the Eighth Circuit, a federal district court judge in Minnesota granted a motion to dismiss a consumer class action suit involving a 2014 data breach affecting over 1,000 grocery stores. The court found that the allegations of possible future identity theft or fraud because of the breach were not sufficient to establish a substantial risk of future harm.
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Yahoo to Pay $80 Million to Settle Securities Class Action Based on Data Breaches
Yahoo agreed to pay shareholders $80 million to settle a federal securities class action suit, as detailed in the parties’ March 2, 2018 proposed settlement agreement filed with the court. In that suit, the shareholders claimed that Yahoo failed to disclose a number of data breaches affecting more than 3 billion users, which caused Yahoo’s…
SCOTUS Denies Cert on CareFirst: No Clarity on Harm in Data Breach Cases This Session
On February 16, 2018, the U.S. Supreme Court denied certiorari to review CareFirst’s appeal of the U.S. Court of Appeals, D.C. Circuit’s decision in Attias v. Carefirst, Inc., 865 F.3d 620 (D.C. Cir. 2017). The D.C. Circuit held that the threat of harm from a data breach is enough to satisfy the “injury in…