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In Re: Science Applications International Corp. (Saic) Backup Tape Data Theft Litigation

Citations: 45 F. Supp. 3d 14; 2014 WL 1858458Docket: Misc. No. 2012-0347

Court: District Court, District of Columbia; May 9, 2014; Federal District Court

Original Court Document: View Document

Narrative Opinion Summary

This case arises from a 2011 data breach involving the theft of backup tapes containing personal and medical information of approximately 4.7 million TRICARE beneficiaries. The plaintiffs, affected individuals alleging potential identity theft and privacy invasion, filed lawsuits against Science Applications International Corporation (SAIC) and governmental entities, including TRICARE and the Department of Defense. The consolidated complaint, which includes over twenty claims, contended violations of federal and state laws. The defendants moved to dismiss the complaint for lack of standing, arguing that the plaintiffs did not suffer an actual injury. The court agreed, dismissing the majority of plaintiffs who could not show that their data was accessed or misused. Only two plaintiffs, Curtis and Yarde, demonstrated sufficient injury due to actual misuse of their personal information, allowing them to proceed with their claims. The court highlighted that an increased risk of identity theft does not meet the threshold for standing, as it remains speculative. The proceedings are paused for parties to confer on the remaining claims and determine the litigation's future direction, with a status hearing to be scheduled.

Legal Issues Addressed

Increased Risk of Harm and Standing

Application: The court held that an increased risk of identity theft does not constitute an injury in fact sufficient to confer standing, as it is speculative and not certainly impending.

Reasoning: Increased risk of harm alone does not suffice for legal standing, as established by the Supreme Court in Clapper v. Amnesty International USA.

Monetary Compensation and Redressability

Application: The court found standing for two plaintiffs whose data was allegedly misused, allowing them to seek monetary compensation.

Reasoning: Regarding standing, the requirement of redressability indicates that only two plaintiffs, Curtis and Yarde, have standing to sue, as their claims involve actual misuse of personal information that can be partially remedied by monetary compensation.

Privacy Claims in Data Breach Cases

Application: The plaintiffs' claims of privacy invasion were dismissed due to lack of evidence that personal information was actually viewed or disclosed.

Reasoning: Privacy claims by the Plaintiffs hinge on the assertion that a data breach resulted in an invasion of their privacy. However, the claim is undermined by the requirement that personal information must be disclosed to a third party to constitute an invasion of privacy.

Standing in Data Breach Litigation

Application: The court determined that most plaintiffs lacked standing because they could not demonstrate actual or imminent injury from the data breach.

Reasoning: Most courts have concluded that without evidence of data misuse, mere data loss does not confer standing. The Court agrees and will dismiss the majority of plaintiffs, though two have sufficiently claimed their data was accessed or misused and may proceed with their claims.