On April 24, 2019, the U.S. Supreme Court issued an important decision touching a number of hot button issues and litigation threats facing American businesses — including class actions, arbitration agreements and data privacy.
The case, Lamps Plus, Inc. v. Varela, 17-988, 2019 WL 1780275 (U.S. Apr. 24, 2019), stemmed from a data breach in which a hacker posing as a company official “tricked” a Lamps Plus employee into disclosing the tax information of approximately 1,300 workers. Among those 1,300 workers was Frank Varela, the named plaintiff. Id. at *2. Following the data breach, Mr. Varela became the victim of identity theft when a fraudulent federal income tax return was filed in his name.