follow-up: RockYou Lawsuit Settlement Leaves Question Marks On Breach Liability

[security curmudgeon <jericho () attrition org>]

http://www.darkreading.com/insider-threat/167801100/security/privacy/232200192/rockyou-lawsuit-settlement-leaves-question-marks-on-breach-liability.html

RockYou Lawsuit Settlement Leaves Question Marks On Breach Liability
Settlement is small, but legal experts say case might pave way for more 
lawsuits against breached companies

Nov 23, 2011 | 11:34 AM
By Tim Wilson
Dark Reading

When Alan Claridge's personal information was compromised in the breach of 
data from RockYou in 2009, he sued the company for damages. Last week, 
after two years in litigation, a settlement was proposed -- and legal 
experts say it might prop the door open for more lawsuits.

According to the proposed settlement, the judgment in Claridge's favor 
awards him only $2,000 -- though his lawyers get $290,000. The financially 
troubled RockYou claimed inability to pay the judgment.

The proposed settlement might not make Claridge a rich man, but legal 
experts say he might have made his point about the liability of companies 
that lose customer data through breaches, according to a commentary by 
Data Privacy Monitor.

"Because only the plaintiff.s claims would be dismissed with prejudice, 
other putative class members may still assert claims for monetary 
damages," the report says. "It is important to note that the proposed 
settlement does not vacate the district court.s April 2011 decision, 
leaving it of record for other plaintiffs to reference in future putative 
class actions."

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