Increased Risk From Breach Doesn’t Create Standing

Allegations of increased risk of future identity theft is not an injury-in-fact that would confer Article III standing to sue for damages based on a data breach incident, the U.S. District Court for the District of New Jersey ruled Feb. 22 in an opinion designated as not for publication (Reilly v. Ceridien Corp., D.N.J., 2:10-cv-05142-JLL-CCC, 2/22/11)

The plaintiffs alleged, among other claims, negligence, breach of contract, breach of the covenants of good faith and fair dealing, and consumer fraud based on a security breach suffered in 2009 by the defendant, a payroll processing firm. Although none of ...