D.C. Court Issues Significant Data Breach Decision
August 7, 2017
On August 1, 2017, the United States Court of Appeals for the D.C. Circuit held that policyholders of the health insurer CareFirst had standing to sue the company after their information was compromised during a cyberattack.
Wading into a vigorously contested area between plaintiffs and companies that have suffered data breaches, the court held that the policyholders’ elevated risk of identity theft and medical fraud was a sufficient injury to bring suit—even without any evidence that plaintiffs had actually suffered such harm. In so holding, the D.C. Circuit came down on one side of a circuit split, which may ultimately need to be resolved by the Supreme Court.