Standing Your Ground: Supreme Court To Consider Standing Question Important In Data Breach Class Action Litigation

Yesterday, the United States Supreme Court granted certiorariin Spokeo, Inc. v. Robins, to consider a question critical to the viability of data breach class actions:  standing.  Since the Court's most recent standing decision in Clapper v. Amnesty Int'l USA, a majority of lower courts have dismissed data breach claims for failing to satisfy Article III's injury-in-fact requirement; however, a growing chorus of lower courts have sanctioned such actions.  As the Supreme Court prepares to wrestle with that split of authority during oral argument this fall, it will be tasked with deciding whether a plaintiff's allegations concerning violations of statutory rights under the Federal Credit Reporting Act ("FCRA") are sufficient to establish standing irrespective of any tangible injury.  The ramifications of that determination are deeply significant, as the decision may either open or close the floodgates to data breach litigation throughout the country.