Case Study: Anderson V. Hannaford Brothers

Law360, New York (November 7, 2011, 3:21 PM EST) -- For years, the class action plaintiffs’ bar unsuccessfully has tried to capitalize on data security breaches, with virtually no success. Court after court has held that absent actual theft and misuse of customers’ data by a hacker, plaintiffs lacked legally cognizable damages sufficient either to establish standing or the elements of a damages claim, and virtually always dismissed the litigation at the earliest stages.

However, a decision by the U.S. First Circuit Court of Appeals on Oct. 11, 2011, may allow such cases to go forward,...
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