In Perlaki v. J.B. Poindexter & Co., Inc., a data breach class action, Magistrate Judge Andrew M. Edison of the Southern District of Texas found that the plaintiff had standing to sue under Article III of the United States Constitution but recommended dismissal of the plaintiff’s data breach plaintiff’s claims under Texas law.

Data breaches have become a serious issue for businesses, leading to numerous putative class action lawsuits alleging that the defendants failed to prevent the unauthorized disclosure of personally identifiable information or protected health information of their employees or customers.