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Millions of Students' Data Breached, Victims Denied Justice
12 Dec
Summary
- Ninth Circuit dismissed a lawsuit, citing no concrete harm from data theft.
- Illuminate Education faces FTC action over a 2021 data breach affecting millions.
- Three state attorneys general have penalized the company for security failures.
Illuminate Education faces significant regulatory action following a massive 2021 data breach affecting over 10 million students. The Federal Trade Commission has initiated measures, requiring the company to implement a comprehensive security program and report future breaches. This action follows penalties and security mandates from three state attorneys general, who also alleged misleading statements about cybersecurity safeguards.
Despite the widespread compromise of sensitive student data, including grades and medical records, a federal appeals court dismissed a class-action lawsuit filed by victims. The Ninth Circuit Court of Appeals ruled that the plaintiffs lacked standing, as they failed to demonstrate actual damage or a substantial risk of future identity theft, noting no reported fraud since the breach.
The company, which was acquired in 2022, had previously been removed from the nonprofit Future of Privacy Forum's "Student Privacy Pledge" after reports questioned its accountability. State regulators emphasized the need for ed tech companies to take privacy obligations seriously, especially concerning children's sensitive information.
