Court approves first-of-its-kind data breach settlement

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http://www.computerworld.com/s/article/9247017/Court_approves_first_of_its_kind_data_breach_settlement?source=rss_keyword_edpicks&google_editors_picks=true

Computerworld - Courts have generally tended to dismiss consumer class-action lawsuits filed against companies that suffer data breaches if victims can't show that the the breach directly caused a financial hit.

A federal court in Florida broke the mold by approving a $3 million settlement for victims of a data breach in which personal health information was exposed when multiple laptops containing the unencrypted data were stolen.

The Dec. 2009 theft of laptops belonging to AvMed, a Florida-based health insurer, exposed the patient records of tens of thousands of its customers. Several victimes later filed a putative class action lawsuit against AvMed.

The plaintiffs suffered no direct losses or identity theft from the breach but nevertheless accused AvMed of negligence, breach of contract, breach of fiduciary duty and unjust enrichment.