We previously reported that Scottrade was hit with a class action case within 24 hours of notifying customers of a data breach [view related post]. According to the Complaint, the data compromised included the names, addresses, telephone numbers, Social Security numbers and work history of customers.
The case against Scottrade was dismissed last week as the plaintiffs failed to show that they were harmed by the breach and therefore, had no standing to sue Scottrade. The case was dismissed without prejudice by the judge, which means that the plaintiffs can later file an amended complaint.
The judge found that the claims of increased risk of identity theft, cost of monitoring their accounts, invasion of privacy and deprivation of the value of their personal information were speculative as the plaintiffs were unable to show that their information has been used to commit identity theft or fraud and that the court would have to “engage in considerable speculation about the hackers’ possible intentions and future actions” to be able to determine whether they will suffer harm in the future.