Bloomberg Law’s combination of innovative analytics, research tools and practical guidance provides you with everything you need to be a successful litigator.
Sept. 26 — Chrysler must face would-be class claims by consumers alleging cybersecurity vulnerabilities lowered the value of their vehicles ( Flynn v. FCA US LLC , 2016 BL 315226, S.D. Ill., No. 15-855, 9/23/16 ).
But the automaker, now known as FCA US LLC, and infotainment system maker Harmon International Industries Inc. won dismissal of claims alleging buyers face an injury risk because hackers could seize control of moving vehicles.
The Sept. 23 ruling allowing some claims to proceed comes as another automaker, Tesla Motors Inc., took steps to address hacking vulnerabilities in some of its vehicles.
The suit in the U.S. District Court for the Southern District of Illinois followed a July 2015 report in Wired Magazine about so-called white-hat software developers’ remote hack of a Jeep through its internet-connected “infotainment” system.
Within days of the report, the automaker announced a recall of 1.4 million vehicles, but plaintiffs say the recall didn’t fix fundamental design flaws.
The plaintiffs have standing, or a basis, to bring claims that they overpaid for the vehicles and that the alleged security flaws caused a drop in resale value, the court said.
But they lack standing to bring claims stemming from fear of future harm, the court said.
The plaintiffs are too removed from the chain of events that would have to occur for serious injury to befall them, the court said.
This isn’t like a data breach case where cybercriminals have stolen credit data they are likely to use in the future, the court said.
Here, there’s no allegation that a real-world hack has caused injury through the uConnect system, and no suggestion that knowledgeable hackers take advantage of these types of vulnerabilities to harm drivers, the court said.
Armstrong Teasdale represents the plaintiffs.
Thompson Coburn LLP represents FCA.
Foley & Lardner LLP represents Harman.
To contact the reporter on this story: Julie A. Steinberg in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Steven Patrick at email@example.com
The opinion is available at http://www.bloomberglaw.com/public/document/Flynn_v_FCA_US_LLC_No_15cv0855MJRDGW_2016_BL_315226_SD_Ill_Sept_2
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)