Cybersecurity » Why A PayPal Shareholder Class Action Was Thrown Out Of Court

Why A PayPal Shareholder Class Action Was Thrown Out Of Court

Flying documents paper information 486187916 420

Technical problems aside, companies that become aware of a data breach are faced with a spectrum of difficult choices, typically boiling down to three questions: What information should be conveyed, to whom, and when? A post in a Sheppard Mullin privacy blog looks at one case where a major company apparently did it right. PayPal, after discovering there had been a breach at a recently acquired business, said it was investigating but wasn’t aware of any customer personal information being at risk. Weeks later the company announced that personal information of 1.6 million customers may have been compromised. The stock price dropped, and plaintiffs who had bought stock between the two announcements mounted a class action. The district court dismissed the case for want of a key element, and its ruling was upheld by the Ninth Circuit.

Read full article at:

Get our free daily newsletter

Subscribe for the latest news and business legal developments.

Read this next

Legal Ops Need to Assess Their Information Governance Programs

The AI Executive Order’s Impact on the Healthcare Industry

President Biden’s Executive Order on the Safe, Secure, and Trustworthy Development and […]

14 Proven Tactics to Elevate Your Law Firm's Webinars and Drive Results

Cybersecurity Agency Warns About Hacking Collective

The Cybersecurity and Infrastructure Security Agency and the FBI have issued a […]

Understanding Quantum Security Essential In Mitigating Risk Of Newest Cyber Threat

Data Privacy and Reputation Concerns About Adopting AI

Reputational damage was the greatest source of concern about AI, followed by […]

Scroll to Top