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breaches incidents
Ninth Circuit: Breach Of Confidence Confers Standing In Health Data Security Case
The Ninth Circuit Court of Appeals ruled that health plan participants have legal standing to sue for damages when their confidential health information is disclosed without authorization, departing from the risk-based standing test that other courts have applied since the TransUnion decision. This decision creates a split with other federal circuits on whether actual harm or injury-in-fact is required to pursue health data breach claims.
Why it matters: Health plan administrators and insurers now face increased litigation risk in the Ninth Circuit, as participants can sue for unauthorized disclosure of health data even without proving financial loss, making standing doctrine a key issue in data security incident response and settlement strategy.
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