Court denies motions to dismiss in PowerSchool Data Breach Litigation
A federal court has refused to dismiss litigation against PowerSchool stemming from a data breach, allowing claims that the education technology company qualifies as a healthcare provider under California's medical information privacy law to move forward.
Why this matters: PowerSchool holds data on tens of millions of students, including health and disability records schools are required to collect. Courts are now treating ed-tech companies as healthcare providers under California law, which carries much stricter liability. That matters because it closes a loophole companies have used to argue they are just software vendors, not responsible parties. If that legal theory holds, the companies building the pipes that carry sensitive student data cannot dodge accountability by pointing at the schools.
Who should care: Cybersecurity · Privacy officers · Administrators · Lawyers · Compliance
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