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U.S. top court rejects shoe retailer Zappos appeal in data breach case

U.S. top court rejects shoe retailer Zappos appeal in data breach case (Incident Response, Learnings)

WASHINGTON, March 25 (Reuters) - The U.S. Supreme Court on Monday rejected a bid by online shoe retailer Zappos to throw out a class-action lawsuit by customers who said their personal information was stolen by hackers in 2012. The justices denied an appeal by Zappos, a subsidiary of Amazon.com Inc, of a ruling by a California-based federal appeals court that revived the lawsuit, dealing a setback to the company and business groups seeking to limit their liability in data breaches, an increasingly common problem in the internet age. Zappos said customers whose data is not used in those ways are not harmed to such a degree that can sustain a federal lawsuit. People who purchased shoes and other items from Zappos filed several proposed class-action lawsuits, saying Zappos used unprotected servers and did not properly encrypt the data. Circuit Court of Appeals overturned the ruling last year, reviving the other claims, saying the “hackers accessed information that could be used to help commit identity fraud or identity theft.”

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