Cloud Storage Company Sued for Breach
PRIVACY LAW—U.S.July 19, 2011
A class-action lawsuit filed in a U.S. District Court in California claims that a cloud storage provider failed to secure data or notify users of a data breach, reports News and Insight. The suit claims breach of express and implied warranties, invasion of privacy and negligence, among other transgressions, alleging that a system glitch allowed logged-in Dropbox users to view others' data. A company blog post said the breach affected fewer than 100 people, and the company will implement additional safeguards. The suit seeks an order requiring the company to better secure its site, as well as damages, costs, injunctive relief and attorney fees, states the report.