21 Feb Supreme Court to Decide on Definition of Harm in Data Breach Case
The US Supreme Court is set to decide this week if it will be accepting a case which could narrow down the definition of “harm” in data breach cases.
The court previously ruled that plaintiffs must claim “actual or imminent harm” in filing a federal case. However, the U.S. Court of Appeals for the District of Columbia Circuit said last summer that data breaches create a substantial risk of identity theft since hackers could potentially use the victim’s identity for purchases and other fraudulent activities.
Experts have said that the Supreme Court’s review would provide much needed clarity on the issue. Rahul Mukhi, cybersecurity and privacy counsel at Cleary Gottlieb Steen & Hamilton LLP in New York added that the Court generally favored higher standing and pleading standards on plaintiffs.