Drivers Lose Appeal Over American Family License-Data Breach

A proposed class action alleging that Midvale Indemnity Co. and American Family Insurance Co. disclosed the driver’s license numbers of auto-insurance applicants in violation of federal and state law was properly dismissed, a divided federal appeals court said.

Alp Baysal, Thomas Maxim, and Sandra Italiano lacked standing to sue in federal court because they failed to allege they suffered an injury from the disclosure of their driver’s license numbers, Judge Frank H. Easterbrook of the US Court of Appeals for the Seventh Circuit said Tuesday.

The ruling was at least the second from a US appellate court in favor of ...