Privacy & Data Security Law News

Amazon Joins Capital One to Question Court’s Cloud Hack Ruling

Oct. 16, 2020, 4:58 PM

Amazon.com Inc. is joining Capital One Financial Corp. in questioning a federal court ruling that let consumers pursue claims over a cloud hack.

Amazon, the bank’s cloud services provider, urged the U.S. District Court for the Eastern District of Virginia in a filing Thursday to reconsider an earlier decision that the state’s negligence law protects personal information.

So far, Virginia’s negligence law has only applied to cases involving physical injury, not economic losses like those at issue with the hack, Capital One said in its initial request for a reconsideration.

Amazon and Capital One are asking for the Virginia Supreme Court to resolve the issue if needed.

Capital One disclosed in July 2019 that a hacker stole data housed on Amazon servers. Federal authorities later arrested and charged a former Amazon cloud engineer with illegally accessing the bank’s files.

The case is: In Re: Capital One Customer Data Sec. Breach Litig., E.D. Va., No. 1:19-md-02915, 10/15/20.

To contact the reporter on this story: Andrea Vittorio in Washington at avittorio@bloomberglaw.com

To contact the editors responsible for this story: Melissa B. Robinson at mrobinson@bloomberglaw.com, Keith Perine at kperine@bloomberglaw.com

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