Summary
The Judicial Panel on Multidistrict Litigation orders centralization of 32 related actions concerning the PowerSchool customer data security breach, along with potential tag-along actions. The Panel transfers the actions to the Southern District of California and assigns them to Judge Roger T. Benitez for coordinated or consolidated pretrial proceedings. The order identifies common factual issues involving the breach, data-security practices, notifications, and overlapping negligence, contract, and unjust-enrichment claims.
Topics
Practice areas
Questions Presented
- Whether the related actions involve common questions of fact warranting centralization under 28 U.S.C. § 1407.
- Whether centralization in the Southern District of California would serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation.
- Whether informal coordination or transfer under 28 U.S.C. § 1404 would be preferable to § 1407 centralization.
Holdings
- The actions listed on Schedule A involve common questions of fact, and centralization under 28 U.S.C. § 1407 is warranted.
- The Southern District of California is an appropriate transferee district for the centralized litigation.
- Informal coordination was not the most efficient method for resolving the litigation, and the Panel declined to deny centralization on that basis.
Key quotations
“IT IS THEREFORE ORDERED that actions listed on Schedule A are transferred to the Southern District of California and, with the consent of that court, assigned to the Honorable Roger T. Benitez for coordinated or consolidated pretrial proceedings.” (-3)
Factual background
The litigation arises from unauthorized access to PowerSchool's Student Information System, which schools use to store personal information of current and former students and staff. The plaintiffs include students, guardians, and school staff seeking nationwide and statewide class actions. The actions assert substantially identical claims for negligence, breach of contract, and unjust enrichment, and discovery will concern the breach, PowerSchool's data-security practices, and notification of affected individuals.
Procedural history
The Panel considered written submissions and held a hearing session concerning centralization of litigation arising from a PowerSchool cybersecurity incident. Most responding parties supported or did not oppose centralization, but the parties disagreed about the appropriate transferee district. The Panel ordered transfer of the Schedule A actions 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.
Remand instructions
The actions listed on Schedule A are transferred to the Southern District of California and, with the consent of that court, assigned to the Honorable Roger T. Benitez for coordinated or consolidated pretrial proceedings.