In a noteworthy turn of events, the Eleventh Circuit has accepted a broad-brush damages methodology at class certification in a data breach class action lawsuit, Brinker. One of the main impediments for class certification in this type of litigation is the difficulty in calculating damages on a class-wide basis.
The problem arises when dealing with large-scale data breaches, where only a minority of those in the class will likely have had their data misused. The question then becomes how to award actual damages for the entire class. This issue is particularly complex, as it challenges the standard procedures for class action lawsuits and stands as a significant challenge for legal practitioners dealing with such cases.
The Eleventh Circuit’s acceptance of a broad-brush methodology means that damages can now potentially be awarded to the entirety of the affected class, not just those who have demonstrably suffered from data misuse. This ruling significantly impacts future data breach class action lawsuits.
A complete analysis and detailed explanation of the context and impact of this ruling has been provided by BakerHostetler here. It offers valuable information for all legal professionals, particularly those handling data breach class action lawsuits, and provides important insight into the direction the courts may take in subsequent related cases.