October 24, 2011
First Circuit Reverses Dismissal of Data Breach Case
In In re Hannaford Bros. Co. Customer Data Security Breach Litig. (pdf), the First Circuit reversed the dismissal of negligence and implied contract claims against Hannaford Supermarkets by customers who were victims of a data breach. The court found that "plaintiffs' reasonably foreseeable mitigation costs constitute a cognizable harm under Maine law." Specifically, the court found that the purchase of identity theft insurance and replacement card fees constituted harm.
Thanks to Lisa Smith-Butler for the alert.
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