MOVEit Breach Defendants Lose 2nd Bid to Toss Negligence Claims
A federal court rejected a second attempt by Progress Software and co-defendants to dismiss negligence claims stemming from the large-scale MOVEit data breach, allowing lawsuits under the laws of California, Indiana, Michigan, and Ohio to move forward in multi-district litigation.
Why this matters: The MOVEit breach hit hundreds of organizations and millions of people. These defendants wanted the negligence claims thrown out on a legal technicality — the economic-loss doctrine, which generally limits who can sue over pure financial harm. The court said no, twice. That matters because it keeps real accountability on the table. Companies that build or rely on file-transfer tools holding sensitive data cannot easily argue their way out of a courtroom. The people whose data was exposed now have a better chance of seeing this through.
Who should care: Cybersecurity · Privacy officers · Administrators
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