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Belzer, Das, Larkin and Stegmaier Obtain Data Breach Class Action Dismissal

May 31, 2022

Chicago partners Geoffrey A. Belzer, Anjali C. Das and Peter J. Larkin and of counsel Jennifer S. Stegmaier obtained a data breach class action dismissal in the U.S. District Court for the Southern District of New York on behalf of a radiology facility and archival imaging system that contained protected health information. About a year and a half after receiving notice of a breach, two patients filed a complaint against the firm’s client and its IT service provider for failing to implement adequate cybersecurity measures, alleging multiple unauthorized individuals had accessed their information. Geoffrey, Anjali, Peter and Jennifer prevailed on their motion to dismiss when the court held that allegations of increased risk of future harm alone is not a cognizable injury. The court also rejected each of the plaintiffs' additional theories of injury based on time and money spent on theft and fraud monitoring, “benefit of the bargain” injury, intrusion upon seclusion and statutory violations. Plaintiff’s counsel initially filed a purported class action designating another individual who was ultimately determined to never have been a patient of the radiology practice. Plaintiff’s counsel dismissed that action after the team moved for dismissal, and counsel then instituted the parallel suit involving these two plaintiffs and the motion to dismiss follows.

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