P.F. Chang’s Seeks Dismissal of Data Breach Class Actions, Arguing the Existence of an Express Contract and Lack of Damages Preclude Claims
Lewert v. P.F. Chang’s China Bistro, Inc., No. 1:14-cv-04787 (N.D. Ill.).
As we described in July and September, P.F. Chang’s was hit with three putative class actions following its announcement of a point-of-sale data breach. On August 29, P.F. Chang’s moved for dismissal of the first two cases, now consolidated in the Northern District of Illinois. In their complaints, plaintiffs John Lewert and Lucas Kosner alleged that by failing to safeguard customer information, P.F. Chang’s breached an implied contract and violated consumer protection laws. The plaintiffs did not bring a breach of express contract claim. P.F. Chang’s argues that the plaintiffs acknowledge the existence of an express contract by alleging that “a portion of the services [they] purchased” at P.F. Chang’s was “compliance with industry-standard measures” for data security and that they were “deprived of the full monetary value of [their] transaction.”
You are general counsel to a company, and your CEO steps into your office, clutching his iPhone in one hand and wiping sweat from his brow with the other, and tells you that a compromising photograph of him was stolen from his phone and posted online. You start thinking not if, but when, shareholders will discover this embarrassment, how much it will cost the company and what legal action to take.
She doesn’t needed to be educated about rap music.
* “Operas can get pretty gory. I should have put that in my brief.” In the upcoming Supreme Court term, it looks like law clerks will have to educate their justices about the intricacies of rap music’s sometimes violent lyrics. [National Law Journal]
* The pay gap between equity and non-equity Biglaw partners is growing wider and wider. According to recent survey, on average, equity partners are bringing home $633K more than non-equity partners each year. [Am Law Daily]
* Hackers are targeting Biglaw firms to acquire their clients’ important secrets. Unfortunately, no one is brave enough to step up to the plate and say their firm’s been hit — admitting that “could be an extinction-level event.” [Tribune-Review]
* Which Biglaw firms had the most satisfied summer associates this year? There was a big rankings shake-up at the top of the list this time around, and we’ll have more on this later today. [Am Law Daily]
* In the wake of the Ray Rice scandal, Adrian Peterson screwed up many of your fantasy football teams after he was indicted for hurting his child “with criminal negligence.” He’s now out on $15,000 bail. [CNN]
Do you know where your data is? According to the Federal Trade Commission, the answer is “no.”
The agency wants Congress to intervene against data brokers – companies that collect personal information and resell it, mainly for marketing purposes. The FTC released a report on Tuesday of the top nine data brokers in the US and how most Americans don’t know that their personal information is being collected.
the FTC states that consumers may benefit from increased transparency into the operations of data brokers. It notes that data brokers collect and store billions of data elements covering nearly every U.S. consumer, in many cases without consumers’ knowledge. The FTC recommends that Congress consider enacting legislation to make data broker practices more visible to consumers and to give consumers greater control over the handling of their information by data brokers.
The data collected by firms like Acxiom, Datalogix and Corelogic range from the innocent (what sports you follow) to the personal (health and financial information) and everything in between (what kind of car you drive and general shopping habits).
* Former top Pentagon lawyer Jeh Johnson previously told us he was done with public service, but when the president asks you to join the Cabinet, it’s kind of hard to say no. Plus this Paul Weiss partner is filthy rich, so he can secure our Homeland any day. [Washington Post]
* Earlier this year, Gibson Dunn appointed a seventh-year associate as the firm’s first ever global pro bono director. We wish her the very best of luck as she tries to make lawyers do work for free. That can be a really tough sell in Biglaw. [Am Law Daily]
* Law school rankings existed long before U.S. News was even conceived of, and they broke schools into two lists: those that matter, and those without the “slightest significance.” Sick burn. [National Law Journal]
* Arizona Law alumni really don’t need to worry themselves about the fact that the school’s servers were hacked. Come on, your credit couldn’t be much worse than it already is with all that debt. [KVOA News 4]
* Lady Gaga is nearing settlement with a disgruntled ex-employee, which is too bad, because we were dying to see her get on the stand. The dropping of F-bombs would’ve been fabulous. [New York Post]
Ed. note: This post appears courtesy of our friends at Techdirt. We’ll be sharing law-related posts from Techdirt from time to time in these pages.
The US government is already fighting wars on several fronts, including the perpetual War on Terror. “War is the health of the state,” as Randolph Bourne stated, and the state has never been healthier, using this variety of opponents as excuses to increase surveillance, curtail rights and expand power.
This weekend, New York Times tech journalist Jenna Wortham made a confession that could be used to send her to prison for a year or more. What was the startling criminal admission? She uses someone else’s password to sign into HBO Go to watch “Game of Thrones.”
[Some friends and I] all had the same plan: to watch the season premiere of “Game of Thrones.” But only one person in our group had a cable television subscription to HBO, where it is shown. The rest of us had a crafty workaround.
She says “crafty.” A federal prosecutor might substitute “illegal” there….
A famed hacker, Andrew “weev” Auernheimer, was sentenced to 41 months in prison yesterday. A jury convicted Auernheimer of conspiracy and identity theft back in November stemming from his role in a scheme to snag the personal email addresses of over 114,000 iPad users, including Mayor Michael Bloomberg, Diane Sawyer, and Mayor Rahm Emmanuel.
Auernheimer argued that he acted as an uninvited “gray hat” hacker, grabbing the email addresses of customers for the sole purpose of exposing the flaws in AT&T’s security.
The sentence, at the upper end of the Guidelines range, is a far cry from the non-custodial slap on the wrist Auernheimer’s attorneys sought. There are two broad categories of response to the sentence. First, that Auernheimer is a completely terrible human being, but that his being a dick does not justify the harsh sentence. Second, that Auernheimer did not commit a real crime because he never intended to steal anyone’s identity and the Computer Fraud and Abuse Act is a bad law.
To these arguments, I reply “yes it does,” and “who cares?”
Have you tried visiting the website of your favorite major law firm today and encountered something like this? Here’s a screenshot for Davis Polk (but you’ll see something similar for Cravath, Jones Day, White & Case, and many other top firms that tipsters emailed us about today):
Average law school debt for graduates of private universities hovered around $122,000 last year. With only 57% of new attorneys actually obtaining real lawyer jobs, recent graduates have a lot to consider when it comes to managing their student loan payments. Thanks to our friends at SoFi, today’s infographic takes a look at student loan debt, including the possible benefits of refinancing for JDs…
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: