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As reported on the Insurance Recovery Blog, Hunton Andrews Kurth insurance practice head Walter Andrews recently commented to the Global Data Review regarding the infirmities underlying an Orlando, Florida federal district court’s ruling that an insurer does not have to defend its insured for damage caused by a third-party data breach. Continue Reading Hunton Insurance Head Comments on Hotel Data Breach Coverage Dispute

On September 26, 2018, the U.S. District Court for the District of Colorado (“the Court”) refused to dismiss all putative class claims against Chipotle Mexican Grill, Inc. (“Chipotle”). This litigation arose from a 2017 data breach in which hackers stole customers’ payment card and other personal information by using malicious software to access the point-of-sale systems at Chipotle’s locations.  Continue Reading Chipotle Consumer Plaintiffs’ Putative Class Case Survives in Part

On September 26, 2018, Uber Technologies Inc. (“Uber”) agreed to a settlement (the “Settlement”) with all 50 U.S. state attorneys general (the “Attorneys General”) in connection with a 2016 data breach affecting the personal information (including driver’s license numbers) of approximately 607,000 Uber drivers nationwide, as well as approximately 57 million consumers’ email addresses and phone numbers. The Attorneys General alleged that after Uber learned of the breach, which occurred in November 2016, the company paid intruders a $100,000 ransom to delete the data. The Attorneys General alleged that Uber failed to promptly notify affected individuals of the incident, as required under various state laws, instead notifying affected customers and drivers of the breach one year later in November 2017.  Continue Reading Uber Settles with 50 State Attorneys General for $148 Million In Connection with 2016 Data Breach

Recently, the UK Information Commissioner’s Office (“ICO”) fined credit rating agency Equifax £500,000 for failing to protect the personal data of up to 15 million UK individuals. The data was compromised during a cyber attack that occurred between May 13 and July 30, 2017, which affected 146 million customers globally. Although Equifax’s systems in the U.S. were targeted, the ICO found the credit agency’s UK arm, Equifax Ltd, failed to take appropriate steps to ensure that its parent firm, which processed this data on its behalf, had protected the information. The ICO investigation uncovered a number of serious contraventions of the UK Data Protection Act 1998 (the “DPA”), resulting in the ICO imposing on Equifax Ltd the maximum fine available. Continue Reading UK ICO Fines Equifax for 2017 Breach

As reported in BNA Privacy Law Watch, the Office of the Privacy Commissioner of Canada (the “OPC”) is seeking public comment on recently released guidance (the “Guidance”) intended to assist organizations with understanding their obligations under the federal breach notification mandate, which will take effect in Canada on November 1, 2018.  Continue Reading Canadian Regulator Seeks Public Comment on Breach Reporting Guidance

On September 5, 2018, the U.S. District Court for the Central District of California held that a class action arising from a 2016 Uber Technologies Inc. (“Uber”) data breach must proceed to arbitration. The case was initially filed after a 2016 data breach that affected approximately 600,000 Uber drivers and 57 million Uber customers.  Continue Reading Uber Data Breach Class Action Must Proceed to Arbitration

As reported on Hunton’s Insurance Recovery blog, the Second Circuit has rejected Chubb subsidiary Federal Ins. Co.’s request for reconsideration of the court’s July 6, 2018, decision, confirming that the insurer must cover Medidata’s $4.8 million loss under its computer fraud insurance policy. In July, the court determined that the loss resulted directly from the fraudulent emails. The court again rejected the insurer’s argument that the fraudster did not directly access Medidata’s computer systems. But the court again rejected that argument, finding that access indeed occurred when the “spoofing” code in emails sent to Medidata employees ended up in Medidata’s computer system. Continue Reading Second Circuit Stands By Medidata “Spoofing” Decision

On August 15, 2018, U.S. District Judge Lucy Koh signed an order granting final approval of the record $115 million class action settlement agreed to by Anthem Inc. in June 2017. As previously reported, Judge Koh signed an order granting preliminary approval of the settlement in August 2017. Continue Reading Judge Grants Final Approval of Record Data Breach Settlement in Anthem Class Action

On August 3, 2018, Ohio Governor John Kasich signed into law Senate Bill 220 (the “Bill”), which provides covered entities with an affirmative defense to tort claims, based on Ohio law or brought in an Ohio court, that allege or relate to the failure to implement reasonable information security controls which resulted in a data breach. According to the Bill, its purpose is “to be an incentive and to encourage businesses to achieve a higher level of cybersecurity through voluntary action.” The Bill will take effect 90 days after it is provided to the Ohio Secretary of State.

On August 3, 2018, California-based Unixiz Inc. (“Unixiz”) agreed to shut down its “i-Dressup” website pursuant to a consent order with the New Jersey Attorney General, which the company entered into to settle charges that it violated the Children’s Online Privacy Protection Act (“COPPA”) and the New Jersey Consumer Fraud Act. The consent order also requires Unixiz to pay a civil penalty of $98,618. Continue Reading Unixiz Agrees to Settle Charges Under COPPA and the New Jersey Consumer Fraud Act