Simpson Thacher Wins Second Dismissal of “Data Exposure” Class Action Against Ally
03.26.24
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On March 25, 2024, Simpson Thacher successfully obtained the complete dismissal – with prejudice – of a putative class action filed against clients Ally Financial, Inc. and Ally Bank (together, “Ally”) in the Southern District of New York. This is the second time that Simpson Thacher secured the Court’s dismissal of plaintiff’s complaint for failing to plead any injury. The suit was originally filed in August 2021 by an Ally customer who alleged that his online username and password had been exposed to certain third-parties with which Ally has business relationships. Simpson Thacher moved to dismiss on the grounds that the plaintiff lacked any cognizable injury and thus had no standing to sue under Article III of the Constitution. The Court agreed, dismissing the complaint on August 2, 2022. On January 9, 2023, the plaintiff amended his complaint in an attempt to cure the deficiencies of the original complaint. Simpson Thacher again moved to dismiss on the grounds that the plaintiff still failed to allege any constitutionally cognizable injury and thus still had no standing. Judge Nelson Román again agreed, noting that the plaintiff’s amended complaint failed to address many of Ally’s arguments and relied on the sort of “attenuated chain of possibilities” insufficient to establish an Article III injury. The Court therefore dismissed the amended complaint in its entirety, this time with prejudice.
The team received a “Shout Out” in The American Lawyer’s “Litigator of the Week” coverage.
The Simpson Thacher team included Martin Bell, Rachel Sparks Bradley, Patrick Barry, and Margerite Blase.