INSIDE COMPLIANCE

Complex litigation in data breach disputes is not surprising due to the reliance on information technology infrastructure. The Identity Theft Resource Center defines a data breach as “an incident in which an individual name plus a Social Security number, driver’s license number, medical record or financial record is potentially put at risk because of exposure.” However, the issue that challenges most plaintiffs’ in a data breach lawsuit is the ability to establish an injury-in-fact sufficient to support Article III standing. Injury-in-fact is harm that is concrete and particularized, and actual or imminent.  Currently, the United States Court of Appeals fails to uniformly decide this issue, creating “splits” in the Circuits regarding Article III standing in data breach litigation. The Supreme Court ruled in fact-distinguishable cases concerning standing, but not in the data breach litigation context. Until the Supreme Court renders guidance, Americans face significant judicial patchwork in privacy protection.