Plaintiffs filed a data breach class action complaint against their former employer alleging that defendant negligently failed to use reasonable means to protect its current and former employees’ personally identifiable information, including social security numbers and bank account routing numbers, from unauthorized access by an unknown third party who used the information to commit fraud. The circuit court granted the defendant’s motion to dismiss by finding that plaintiffs lacked standing and failed to plead adequate facts to support their claims. Plaintiffs appealed and argued, in part, that the circuit court erred under the Moorman doctrine. The appellate court affirmed in part and reversed in part. The court held that plaintiffs had standing and reversed the dismissal of a negligence claim and one plaintiff's claim for breach of implied contract and Consumer Fraud Act violations, but affirmed dismissal of claims brought by a second plaintiff under breach of implied contract and the Consumer Fraud Act. (MARTIN and D.B. WALKER, concurring)
Illinois Appellate Court
Civil Court
Data Security