AvMed data breach case opens door for ID theft claims

Share this article:

Ben Thomassen, an associate with Edelson McGuire, the Chicago law firm representing the plaintiffs, said that in addition to winning the ID theft argument, the court also sided, in an unprecedented fashion, with the claimants' allegations of "unjust enrichment." The court held that the premiums AvMed members pay to the company includes an expectation for the protection of personal information.

"When a company doesn't live up to the obligation that it's supposed to...that person [victimized by a breach] has a cause of action for that money he paid toward the protection of his personal information," Thomassen told SCMagazine.com.

Now, the case again will return to the lower court, so AvMed can answer the allegations. The appeals court did dismiss the negligence and breach of contract claims.

An AvMed spokeswoman could not immediately be reached for comment.

David Navetta, founding partner of InfoLawGroup, said in a blog post that he predicts the 11th Circuit will see more breach cases as a result.

"Whether plaintiffs making such allegations can ultimately prove their claims is a question for another day," he wrote. "Even so, this decision may give some plaintiffs litigation leverage to move their cases toward a jury trial and possibly force settlement."

Page 2 of 2
Share this article:
You must be a registered member of SC Magazine to post a comment.

Sign up to our newsletters

More in News

Two Russian cybercriminals nabbed in Android malware scheme

Two men were arrested for stealing money from victims' bank accounts after sending malicious emails offering a romantic gift.

TorrentLocker developers patch error

Victims had been able to restore encrypted files without paying a ransom.

Home Depot: breach risks 56M payment cards, 'unique' malware used

Home Depot confirmed that approximately 56 million payment cards may have been compromised as result of a malware attack.