On August 20, 2020, the Department of Justice (“DOJ”) announced that it had charged Joseph Sullivan, the former Chief Security Officer (“CSO”) of Uber Technologies Inc. (“Uber”), with obstruction of justice and misprision of a felony for allegedly attempting to cover up Uber’s 2016 data incident during the course of an investigation by the Federal Trade Commission (“FTC”).
Continue Reading DOJ Charges Former Uber Executive for Alleged Role in Attempted Cover-Up of 2016 Data Breach

In a landmark enforcement action related to a bank data breach, the Office of the Comptroller of the Currency (“OCC”) assessed an $80 million civil monetary penalty and entered into a cease and desist order with the bank subsidiaries of Capital One on August 6, 2020.  The actions follow a 2019 cyber-attack against Capital One.  The Federal Reserve Board also entered into a cease and desist order with the banks’ parent holding company.  The OCC actions represent the first imposition of a significant penalty against a bank in connection with a data breach or an alleged failure to comply with the OCC’s guidelines relating to information security.
Continue Reading OCC Imposes $80 Million Penalty in Connection with Bank Data Breach

In a highly-anticipated landmark judgment handed down on July 16, 2020, the Court of Justice of the European Union (the “CJEU”) in Data Protection Commissioner v. Facebook Ireland and Maximillian Schrems (“Schrems II”, summarised in part 3. below and the full text of which can be accessed here) has:

  • invalidated the European Commission Decision 2016/1250 on the adequacy of the protection provided by the EU-U.S. Data Protection Shield (the “EU-US Privacy Shield”) for transfer of personal data from the EU to entities certified under the mechanism located in the United States;
  • upheld the European Commission Decision 2010/87 on standard contractual clauses for the transfer of personal data to processors established outside the EU (the “SCCs”); and
  • reminded that a transfer of data based on SCCs may be challenged before the competent supervisory authority, which has to “suspend or prohibit”, on a case-by-case basis, any such transfer when, in its view, the SCCs “are not or cannot be complied with.”


Continue Reading Schrems II: The CJEU Declares EU-U.S. Privacy Shield Invalid, Upholds the SCCs And Calls On 27 Supervisory Authorities to Ensure Their Compliance

On June 25, 2020, a federal district court in the Eastern District of Virginia held that a bank must produce in discovery a report generated by its cybersecurity forensic investigator following a 2019 data breach involving unauthorized access to personal information of customers and individuals who had applied for accounts.[1]  Even though the report was produced at the direction of outside counsel, the court rejected arguments that the forensic report is protected from disclosure by the work product doctrine.  Instead, the court determined that the report was not produced primarily in anticipation of litigation based on several factors, including the similarity of the report to past business-related work product by the investigator and the bank’s subsequent use and dissemination of the report.  This decision raises questions about the scope of work product protection for forensic expert and other similar reports in the context of an internal investigation.
Continue Reading Federal Court Compels Production of Data Breach Forensic Investigation Report

On May 5, 2020, the Seventh Circuit Court of Appeals held that a plaintiff has standing to assert a claim under the Illinois Biometric Information Privacy Act (BIPA) even without alleging any economic loss or data breach.  The court’s decision in Bryant v. Compass Group USA, Inc.,[1] held that merely alleging a failure to receive adequate disclosure or provide informed consent is sufficient to state a claim, potentially establishing in the Seventh Circuit a low bar for making claims under BIPA and other state statutes modeled off of it.
Continue Reading The Seventh Circuit Holds That Lack of Disclosure and Informed Consent Under Biometric Information Privacy Act Satisfies Article III Standing Requirement

The UK Supreme Court, in a unanimous decision delivered on April 1,[1] has overturned the decision of the Court of Appeal which had found that Morrisons Supermarkets plc (“Morrisons”) could be held vicariously liable for the unauthorized actions of an employee who had deliberately leaked the personal data of thousands of Morrisons’ employees online. In its judgment, the Supreme Court explained that the Court of Appeal had “misunderstood the principles governing vicarious liability”.[2] For more information on the background of this case and the High Court and Court of Appeal judgments, please see our article here. The full text of the Supreme Court judgment can be read here.
Continue Reading Relief for Employers as Supreme Court Rules no Liability in Morrisons Data Breach Case

In 2019, boards and senior management across a range of industries continued to cite cybersecurity as one of the most significant risks facing their companies.

At the same time, comprehensive data privacy regulation became a new reality in the United States as many companies implemented major revisions to their privacy policies and data systems to

While the EU General Data Protection Regulation 2016/679 (the “GDPR”) has grabbed headlines due to its extraterritorial reach and administrative fining regime (which permits fines for non-compliance up to the higher of €20 million or 4% of global, annual turnover),[1] a recent decision in the Northern District of California – Finjan v. Zscaler (“Finjan”)[2] – suggests that U.S. Courts won’t view the EU data protection legislation as an absolute obstacle to domestic discovery.  Finjan, as the first post-GDPR ruling of its kind, suggests that it will be business as usual navigating between U.S. civil discovery and EU law, at least from the U.S. courts’ perspective.
Continue Reading Can the GDPR Tip the Scales in U.S. Discovery – Finjan v. Zscaler

In February of this year the German antitrust agency, the Federal Cartel Office (“FCO”), issued a decision against Facebook regarding their handling of user data. Please see our previous blog-post detailing the FCO’s arguments here

Facebook appealed and on August 26, 2019, the Düsseldorf Court of Appeal (“DCA”) in an interim decision granted suspensive effect to Facebook’s appeal against the FCO decision.

The DCA can order suspensive effect to an appeal if it has serious doubts whether the prohibition decision is legally valid.  Despite the preliminary character of the DCA’s decision, this could represents a significant setback for the FCO and have signaling effect beyond the German borders,. The DCA made certain important points on issues of law, which it will likely not revers during its main proceedings.
Continue Reading German Court Divorces GDPR and Competition Law in Facebook Appeal