DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

Data Breach Plaintiffs’ Allegations Sufficient for Standing in Employee’s Suit Against CareCentrix

Posted on December 21, 2016 by Dissent

Ted Karch writes:

On Monday, the court in Hapka v. CareCentrix, Inc. ruled that employees of CareCentrix whose personal information was compromised have alleged enough harm for standing under Spokeo, Inc. v. Robins.

In early 2016, a phishing attack compromised defendant CareCentrix’s systems, revealing personal information of up to two thousand employees.  CareCentrix notified the plaintiff of the data breach on March 27, 2016, and on April 18, the plaintiff received a letter from the IRS stating that someone had filed a fraudulent tax return in her name.

Read more on Covington & Burling InsidePrivacy.

This is a case where a plaintiff could allege actual, concrete injury, but there is something else notable about the opinion, I think. Karch writes:

The court also ruled that the plaintiff had adequately pleaded the elements of a negligence claim, alleging that defendant had failed to implement reasonable data security measures to protect employees’ personal information from disclosure.

From the opinion and order, which I’ve uploaded here, it appears the court rejected the defendant’s argument that in the absence of a statutory duty to protect employee data, the plaintiffs had to show a common-law duty and had failed to do so:

Plaintiff responds that defendant’s duty is to exercise reasonable care when it collects and stores the personal information of its employees. In this instance, defendant was obligated to implement reasonable data security measures to protect that information from disclosure. See In re Target Corp. Customer Data Sec. Breach Litig., 64 F. Supp. 3d 1304, 1308 (D. Minn. 2014) (“[G]eneral negligence law imposes a general duty of reasonable care when the defendant’s own conduct creates a foreseeable risk of injury to a foreseeable plaintiff.”) (citations omitted).

The court agrees with plaintiff that requiring identification of a statutory duty is unnecessary. Given plaintiff’s allegations that the harm was foreseeable, defendant had the duty to exercise reasonable care to prevent that harm. The court will not dismiss plaintiff’s claim for failure to identify a more specific duty.

A case to watch, indeed.

Category: Commentaries and Analyses

Post navigation

← This Free App Can Protect You From Ransomware
Data breach affects almost 400,000 Community Health Plan members (UPDATE2) →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Fresno County fell victim to $1.6M phishing scam in 2020. One suspected has been arrested, another has been indicted.
  • Ransomware Attack on ADP Partner Exposes Broadcom Employee Data
  • Anne Arundel ransomware attack compromised confidential health data, county says
  • Australian national known as “DR32” sentenced in U.S. federal court
  • Alabama Man Sentenced to 14 Months in Connection with Securities and Exchange Commission X Hack that Spiked Bitcoin Prices
  • Japan enacts new Active Cyberdefense Law allowing for offensive cyber operations
  • Breachforums Boss “Pompompurin” to Pay $700k in Healthcare Breach
  • HHS Office for Civil Rights Settles HIPAA Cybersecurity Investigation with Vision Upright MRI
  • Additional 12 Defendants Charged in RICO Conspiracy for over $263 Million Cryptocurrency Thefts, Money Laundering, Home Break-Ins
  • RIBridges firewall worked. But forensic report says hundreds of alarms went unnoticed by Deloitte.

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Massachusetts Senate Committee Approves Robust Comprehensive Privacy Law
  • Montana Becomes First State to Close the Law Enforcement Data Broker Loophole
  • Privacy enforcement under Andrew Ferguson’s FTC
  • “We would be less confidential than Google” – Proton threatens to quit Switzerland over new surveillance law
  • CFPB Quietly Kills Rule to Shield Americans From Data Brokers
  • South Korea fines Temu for data protection violations
  • The BR Privacy & Security Download: May 2025

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.