Judge dismisses suits against Paytime

A federal judge has dismissed two potential class-action suits filed against Pennsylvania-based Paytime Inc. seeking financial compensation for the payroll company's clients who said an April breach put them at risk of identity theft.

U.S. Middle District Judge John E. Jones III said upon dismissal, that a court ruling on the suits was premature and that it would be “overzealous and unduly burdensome to businesses” to compel them to pay damages “when there is yet to be a single case of identity theft.”

Nearly a quarter of a million Paytime clients may have had personal information compromised after hackers took advantage of a vulnerability in its systems in breach that the company revealed last May. 

Jones noted that “courts cannot be in the business of prognosticating” whether a hacker could “successfully read and manipulate the data and engage in identity theft.”

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