On June 4, 2015, the Minnesota District Court dismissed a data breach class action for lack of constitutional standing because the plaintiffs did not allege injury in fact. Carlsen v. GameStop.
Defendants challenged the court’s subject matter jurisdiction under Rule 12(b)(1) of Federal Rules of Civil Procedure and sought dismissal on the grounds that Plaintiffs lack Article III standing for failure to allege any economic injury at all.
The Court agreed and dismissed the complaint pursuant to Rule 12(b)(1) of the Federal Rules of Civil Procedure for lack of subject matter jurisdiction holding that Plaintiffs “failed to allege an injury in fact and as a result has not established standing under Article III of the Constitution”.
In addition, according to the Court, the disclosure of Facebook ID and browsing patterns is not suffice to establish injury as would the disclosure of any highly sensitive financial information such as credit card or social security data. In any case, the Court noted that Plaintiffs failed to allege that Facebook, or anyone, actually did anything with the information it received.
Finally, the Court held that Plaintiffs failed to allege Article III injury also in light of the fact that they did “not adequately claim an unjust enrichment injury under a “would not have shopped” theory or injury based upon reasonable expectations of privacy”.
For more information: Francesca Giannoni-Crystal