Smith, Gambrell & Russell International LLP is set to defend itself against a class-action lawsuit alleging negligence related to a significant data breach in 2021. The breach reportedly exposed the personal information of over 78,000 individuals. According to Judge John A. Kronstadt of the U.S. District Court for the Central District of California, the plaintiffs have sufficiently claimed that Smith, Gambrell & Russell owed them a duty to safeguard their personal identifying information and failed to meet this duty, resulting in injury. Specific details were provided in the judge’s ruling on the firm’s motion to dismiss, allowing the negligence claims to proceed.
The judge’s decision also involved dismissing two California statutory claims with prejudice and allowing the plaintiffs to amend their claims regarding breach of implied contract. This ruling underscores the heightened expectations placed on law firms and other entities that handle sensitive client data to implement robust data protection measures. The lawsuit and subsequent rulings could serve as a precedent, influencing how future data breach cases are adjudicated.
More on this developing legal situation can be found on Bloomberg Law.