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Causation and Harm In Data Breach Litigation

Demonstrating that a data breach has resulted in an injury-in-fact can be difficult, because it is not always clear what has happened or will happen with the stolen data.

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Data breaches can have substantial adverse impacts on firms, not only in the form of negative publicity or harm to a company’s brand and revenues, but through litigation that may result. A key point of contention in data breach litigation has been whether plaintiffs have met the injury-in-fact standing requirement of Article III of the Constitution. Demonstrating that a data breach has resulted in an injury-in-fact can be difficult, because it is not always clear what has happened or will happen with the stolen data.

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