We previously wrote about the proposed class-action lawsuit against Canon USA Inc. that resulted from a data breach of former and current employees’ personal information. This week, Canon argued in New York federal court that the plaintiffs lacked standing and that the case should be dismissed. Canon stated in its memorandum of law that lost or diminished value of personal information resulting from a ransomware attack is NOT a cognizable injury that confers Article III standing. Further, Canon argued in its memorandum that the plaintiffs’ allegations merely suggested a future risk of harm; again, not enough to meet the Article III requirements for standing.

In addition to Canon’s argument that the plaintiffs lacked standing, Canon also argued that the plaintiffs failed to state claims upon which relief can be granted. In the complaint, the plaintiffs alleged that Canon acted negligently. However, Canon argues that the complaint did not offer any facts to support that claim.

Further, Canon argued that the invasion of privacy claim also fails since the “intrusion upon seclusion” theory requires intent, evidence of which plaintiffs also failed to provide.

We will watch the plaintiffs’ response and the court’s decision on this issue.

Photo of Kathryn Rattigan Kathryn Rattigan

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security…

Kathryn Rattigan is a member of the Business Litigation Group and the Data Privacy+ Cybersecurity Team. She concentrates her practice on privacy and security compliance under both state and federal regulations and advising clients on website and mobile app privacy and security compliance. Kathryn helps clients review, revise and implement necessary policies and procedures under the Health Insurance Portability and Accountability Act (HIPAA). She also provides clients with the information needed to effectively and efficiently handle potential and confirmed data breaches while providing insight into federal regulations and requirements for notification and an assessment under state breach notification laws. Prior to joining the firm, Kathryn was an associate at Nixon Peabody. She earned her J.D., cum laude, from Roger Williams University School of Law and her B.A., magna cum laude, from Stonehill College. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.