A federal magistrate judge in California dealt another blow to data breach class actions by dismissing a proposed lawsuit against Internet car service Uber Technologies.
The suit was filed after Uber revealed that as many as 50,000 Uber drivers’ names and license numbers were compromised in a data breach in 2014. The proposed class action alleged that Uber should have done more to prevent the breach and that affected drivers should have been told about it much earlier. The Court dismissed the case for lack of standing, finding insufficient allegations that Uber’s actions caused injury. The lead plaintiff, however, has been afforded an opportunity to file an amended complaint.
While this case is good news for companies that may face potential class actions, it underscores the need for sound data security policies and practices and for timely disclosures of data breaches.
Antman v. Uber Technologies Inc, U.S. District Court for the Northern District of California, No. 15-1175.