U.S. Judge in PA Dismisses Paytime Breach Class Actions

As reported in a Nixon Peabody Privacy Partner Blog :

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Plaintiffs in two consolidated putative class actions arising from a data breach at Paytime, Inc. failed to plead specific facts suggesting that they have legal standing, Judge John E. Jones of the U.S. District Court, Middle District of Pennsylvania held March 15. According to the NP Privacy Partner blog, the plaintiffs allege a third-party hacker breached payroll’s computer systems, putting more than 233,000 Paytime clients at risk of identity fraud.

Judge Jones said that the plaintiffs simply have not suffered any compensable injury. The court concluded that it would be overzealous and unduly burdensome to subject companies to claims by thousands of customers based upon the mere possibility that identity theft could occur as a result of a breach, according to NP Privacy.

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