The Second Circuit recently issued a decision in McMorris v. Carlos Lopez & Associates, LLC, No. 19-4310, 2021 U.S. App. LEXIS 12328 (2nd Cir. Apr. 26, 2021), which clarifies the circumstances under which plaintiffs alleging an increased risk of future identity theft or fraud due to the exposure of their personal data can establish Article III standing. Notable for being the first Second Circuit decision to address privacy-related standing questions that had arguably created a circuit split, the court endorsed a three-factor framework that would reject a finding of Article III standing absent sufficient evidence of “increased risk” of future fraud or identity theft, but which left open the possibility that standing could still be established where plaintiffs allege a sufficient likelihood of misuse of their personal data.
Continue Reading Second Circuit Clarifies Article III Standing Threshold for Data Breach Class Actions