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IAPP Westin Research Center

Court Decision Brings Implications for Breach Liability

By Dennis Holmes, IAPP Westin Research Fellow

On September 3, the Fifth Circuit reversed and remanded a District Court ruling that dismissed a negligence claim based solely on economic losses in Lone Star National Bank v. Heartland Payment Systems, Inc. Though the Fifth Circuit stopped short of deciding any dispositive issues, the decision has important implications concerning the scope of liability for data breaches.

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