Federal workers can move ahead with data breach claims tied to a hack of the Office of Personnel Management’s systems that exposed millions of current and former employees’ personal information.

Risk of future identity theft is enough to establish standing to sue in federal court, the U.S. Court of Appeals for the District of Columbia Circuit said, reviving the complaint and remanding the case back to the district court. The data breach claims “are plausibly traceable to OPM’s challenged conduct,” the court said June 21.

The district court erred in finding that federal workers didn’t allege actual damages under the...