Court approves first-of-its-kind data breach settlement

[InfoSec News <alerts () infosecnews org>]

http://www.computerworld.com/s/article/9247017/Court_approves_first_of_its_kind_data_breach_settlement

By Jaikumar Vijayan
Computerworld
March 17, 2014

Courts have generally tended to dismiss consumer class-action lawsuits 
filed against companies that suffer data breaches if victims can't show 
that the the breach directly caused a financial hit.

A federal court in Florida broke the mold by approving a $3 million 
settlement for victims of a data breach in which personal health 
information was exposed when multiple laptops containing the unencrypted 
data were stolen.

The Dec. 2009 theft of laptops belonging to AvMed, a Florida-based health 
insurer, exposed the patient records of tens of thousands of its 
customers. Several victimes later filed a putative class action lawsuit 
against AvMed.

The plaintiffs suffered no direct losses or identity theft from the breach 
but nevertheless accused AvMed of negligence, breach of contract, breach 
of fiduciary duty and unjust enrichment.

[...]



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