Data Breach Class Action
In Joan Longenecker-Wells v. Benecard Services, Inc., plaintiffs were employees who learned that their personal information, including date of birth, social security number, addresses, etc. which resulted in fraudulently filed tax returns. The Third Circuit dismissed the Plaintiff’s claims, stating that their negligence claims were barred by the economic loss doctrine. The Third Circuit explains:
The District Court held that because Plaintiffs’ negligence claim sounds only in economic loss resulting from the fraudulent tax returns filed with their information, the economic loss doctrine bars their claim. We agree.
Food for thought. Eh? Can we say that a plaintiff, who experiences this grave injustice of losing the benefit of a 5 figure tax return is only sustaining economic loss. I would think that the experience is emotionally draining if not traumatic to know that a fraudster has exploited your key identifying data to extract money that was owed to you.
In contrast, we have Taylor v. Spherion Staffing LLC, et al. No. 3:15-cv-2299 (N.D. Ohio 2015), Ernst v. Dish Network, LLC, et al. No. 1:12-cv-8794 (S.D.N.Y May 27, 2016); Hillson et al. v. Kelly Services, No. 2:15-cv-10803 (E.D. Mich. June 8, 2016). These cases settled and involved allegations of statutory violations. Keep in mind that Spokeo left open the possibility that a statutory violation may involve a sufficient risk of harm to satisfy the concreteness requirement. Thus, settlement may have presented a more attractive alternative than extended litigation about the sufficiency of alleged harms.
Note: This blog post is republished from my Privacy Law Diva blog.
We are actively investigating a class action on behalf of all Washington State consumers who have received notification about their information affected as the result of the Anthem’s 2014 data breach. SKW Seattle Data Breach/Class Action attorneys were provided with information that links Washington residents who were Anthem insureds directly with instances of tax fraud and other attempts of identity theft.
As NY Times recently reported, over 200,000 attempts to view the past returns using stolen information were made from February of this year to mid-May. What’s scarier: about half of the attempts were successful. According to a data security expert and consultant who is a source close to the SKW law firm, there is a direct connection with the Anthem data breach and fraudulent tax returns in Washington state. More to come in future posts.
If you were a Washington state resident insured with Anthem or Apple Health (Washington State Medicaid provider) and have experienced identity theft, please contact Catherine@Stritmatter.com.