Lawsuit Against Data Security Company Arising Out of State Tax Breach Dismissed

From: Bloomberg/BNA

A federal district court March 12 dismissed a putative class action alleging that a data security company’s actions led to a data breach at the South Carolina Department of Revenue, finding the plaintiff’s claimed injuries “too speculative” to establish Article III standing (Strautins v. Trustwave Holdings, Inc., 2014 BL 67509, N.D. Ill., No. 1:12-cv-09115, dismissed 3/12/14).

Social Security numbers for some 3.6 million taxpayers, as well as information belonging to 657,000 businesses and 387,000 credit and debit card holders, were exposed in a hacking breach at the department .

Plaintiff Amber J. Strautins sued Trustwave Holdings Inc., a Chicago-based data security company, on behalf of a proposed class of taxpayers who filed South Carolina tax returns since 1998. She alleged that Trustwave, which maintained the security of the Department of Revenue’s system, inadequately protected her personally identifiable information (PII).

Judge John J. Tharp Jr. of the U.S. District Court for the Northern District of Illinois granted Trustwave’s motion to dismiss and dismissed the case without prejudice.

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