The Eleventh Circuit Finds that Potential Future Misuse of Personal Information Does Not Confer Article III Standing in Data Breach Suits

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On February 4, 2021, the Eleventh Circuit Court of Appeals issued a critical opinion addressing Article III standing in private data breach actions, which has been the subject of a closely watched circuit split.

The case, Tsao v Captiva MVP Restaurant Partners LLC, originated in the District Court for the Middle District of Florida where the plaintiff filed a class action complaint against the restaurant chain PDQ in connection with a May 2017 data breach. Following the breach, PDQ posted a notice to customers regarding the breach, explaining that customers’ names, credit card numbers, card expiration dates and CVVs may have been exposed.

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Disruptionware V: Malicious Cyber Actors Attack a Florida Water Treatment Facility

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We have posted four previous articles discussing the foundation and structure of what a disruptionware attack is, how their attack matrix works, possible defenses to disruptionware attacks and industries that are very susceptible to these attacks. Disruptionware has proven over the last year that it is a growing and dangerous cyber threat to our data, our businesses and possibly our lives.

Disruptionware attacks typically involve ransomware and they aim to encrypt and hold the victim’s data hostage. Such attacks are usually financially motivated, and, to date, there have fortunately been only a few known examples where the disruptionware attack has resulted in threats to health and safety or caused loss of life. When such significant collateral damage has occurred, it typically appears to have been inadvertently caused.

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Fifth Circuit Decision Motivates Covered Entities to Appeal Unreasonable Enforcement Outcomes

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The United States Court of Appeals for the Fifth Circuit (the “Court”) vacated a $4,348,000 civil monetary penalty (“CMP”) imposed by the U.S. Department of Health and Human Services’ Office for Civil Rights (“HHS-OCR”) in 2017 against the University of Texas M.D. Anderson Cancer Center (“MD Anderson”) for alleged violations of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) Privacy Rule and HIPAA Security Rule. The Court held that OCR’s actions were “arbitrary, capricious, and otherwise unlawful” and remanded the case for further proceedings. While the case is not binding precedent outside the Fifth Circuit, MD Anderson is the first HIPAA Covered Entity to appeal its fine to a Circuit Court since the HIPAA Privacy Rule and the HIPAA Security Rule took effect. The ruling likely will motivate future HIPAA settlement negotiations with HHS-OCR and encourage HIPAA Covered Entities to appeal enforcement outcomes they consider unreasonable.

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IT Security Trends in the Era of COVID: Our Top Five Tips for Making Your Network Safer in 2021

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As the COVID era drags on, it is clear that work life “post-COVID” may be very different from life “pre-COVID.” This is especially true as it relates to IT security. More and more employees have shifted to a telecommuting work model, and for many businesses that may be the case for an indefinite period of time. This raises important questions as to which security improvements or other changes IT departments need to make in 2021 to keep their businesses and client data safer from cyberattacks.

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Draft Standard Contractual Clauses Released by European Commission: New Clause Cause for Applause?

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Following on from last week’s big announcement by the European Data Protection Board (EDPB) on its expectations for international data transfers after the European Court of Justice’s July 16 Schrems II decision, the European Commission released a draft set of new Standard Contractual Clauses (SCCs) and a draft implementing decision. The Commission’s draft set of clauses allows for two new types of transfer and contains important updates to bring the text of the clauses in line with the General Data Protection Regulation. The draft documents are now available for public consultation, and both the EDPB and the European Data Protection Supervisor will be asked for their opinions on the documents. Following the Schrems II decision, many organizations have been waiting for guidance on additional safeguards and for the (long overdue) arrival of updated Standard Contractual Clauses. While the last few days have seen some welcome developments after a period of hiatus, organizations will likely need some time to assess the practical implications before making radical changes to international data transfer arrangements.

For the full alert, visit the Faegre Drinker website.

European Data Protection Board Issues New Recommendations for International Data Transfers: Essential Guarantees, Supplemental Measures, and False Warrant Canaries

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A pair of highly anticipated guidance documents outline the European Data Protection Board’s (EDPB) expectations for organizations transferring data out of the EU. While the detailed process for evaluating data transfers brings welcomed guidance and clarity, some aspects of the EDPB’s framework present significant obstacles for those working with non-EU service providers or moving data for routine business purposes.

For the full alert, visit the Faegre Drinker website.