5th Circ. Ruling May Expand Cybersecurity Liability

Law360, New York (September 20, 2013, 11:57 AM EDT) -- The Fifth Circuit recently found that a company experiencing a data breach may be liable to injured commercial parties under a “negligence” theory. The appellate court recognized a potentially expansive possible tort remedy in the context of cybersecurity claims made by a commercial entity against another commercial entity. It did so by reviving claims by credit card issuers for negligence against a credit card payment processor associated with cybersecurity breaches, reversing a lower court decision that had held that such losses were limited to contract remedies....
To view the full article, register now.