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Texas Drivers Lose Appeal Over Vertafore License Data Hack

March 11, 2022, 8:48 PM

A proposed privacy class action brought by Texas driver’s license holders was thrown out Friday by the Fifth Circuit, which ruled that the plaintiffs failed to allege how the hack of an insurance software company’s data storage constituted “disclosure” by the company.

Vertafore Inc.’s external storage service was accessed without authorization in 2020, compromising the driver’s license information of about 27.7 million individuals. The U.S. District Court for the Southern District of Texas ruled that because the class complaint didn’t describe how the company’s purported mismanagement of the information amounted to a knowing disclosure, the license holders didn’t have a ...