Software Company Reaches Settlement Over Data Breach

On June 9, 2015, plaintiffs in a class action lawsuit against a software company moved for approval of a settlement for injunctive relief. The suit arose after the company's 2013 data breach. Plaintiffs alleged that the defendant company failed to adequately disclose its security practices, and to follow its own privacy policy, in violation of California's Online Privacy Protection Act and Unfair Competition Law. Plaintiffs also stated a claim for damages under the California Data Breach Act, alleging negligence and unreasonable delay in informing class members about the breach. In the settlement agreement, the defendant company agreed to enhance security measures and audit its security procedures.