By corporate standards, the data breach settlement that health insurer AvMed Inc. signed off on was not large—only $3 million. But two things caught the attention of lawyers. First, the settlement guaranteed payments to all class members without their having to prove actual damages. And it was secured after a district court in Florida twice dismissed the suit—only to have it reinstated by the U.S. Court of Appeals for the Eleventh Circuit.
Kenneth Dort, who chairs Drinker Biddle & Reath’s technology committee (and was not involved in the AvMed case), says that this development is important. “This is the first time,” he says, “the defendant has thrown some money in the direction of the class members to make them go away.”
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