Summary
The Judicial Panel on Multidistrict Litigation orders the centralization of 32 customer data security breach actions involving PowerSchool Holdings, Inc. and PowerSchool Group LLC, along with related actions, in the Southern District of California. The order assigns the coordinated or consolidated pretrial proceedings to Judge Roger T. Benitez under MDL No. 3149.
Topics
Practice areas
Questions Presented
- Whether the actions involve common questions of fact warranting centralization under 28 U.S.C. § 1407.
- Whether centralization would serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation.
- Which federal district is an appropriate transferee district for coordinated or consolidated pretrial proceedings.
Holdings
- Centralization is warranted because the actions involve common questions of fact arising from the same cybersecurity incident, and centralization will serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation.
- The Southern District of California is an appropriate transferee district for the litigation.
- Informal coordination was not the most efficient method of resolving the litigation.
Key quotations
“On the basis of the papers filed and the hearing session held, we find that the actions listed on Schedule A involve common questions of fact, and that centralization in the Southern District of California will serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation.” (at 1)
“We are not persuaded that informal coordination is the most efficient route to resolving this litigation.” (at 2)
“The Southern District of California is an appropriate transferee district for this litigation.” (at 2)
Factual background
The actions arise from a cybersecurity incident involving unauthorized access to PowerSchool's Student Information System, which stored personal information of current and former students and school staff. Plaintiffs seek nationwide and statewide class certification and assert virtually identical claims for negligence, breach of contract, and unjust enrichment. Discovery will concern how and when the breach occurred, the adequacy of PowerSchool's data-security practices, and the timing and adequacy of breach notifications.
Procedural history
The Panel considered the written submissions and a hearing session concerning centralization and selection of a transferee district. It granted centralization, transferred the actions listed on Schedule A to the Southern District of California, and assigned them, with that court's consent, to Judge Roger T. Benitez for coordinated or consolidated pretrial proceedings.