Summary
The United States Judicial Panel on Multidistrict Litigation orders centralization of actions arising from the PowerSchool customer data security breach. The Panel transfers the actions listed on Schedule A to the Southern District of California and assigns them to Judge Roger T. Benitez for coordinated or consolidated pretrial proceedings. The order finds common factual and legal issues involving the breach, data security practices, notification, and related negligence, contract, and unjust-enrichment claims.
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 should serve as the transferee district for coordinated or consolidated pretrial proceedings.
Holdings
- The actions involve common questions of fact, and centralization under 28 U.S.C. § 1407 is warranted.
- Informal coordination was not the most efficient means of resolving the litigation because no parties had moved under § 1404 to transfer the actions to a common district and there was no assurance that any such motions would be uncontested.
- The Southern District of California is an appropriate transferee district for coordinated or consolidated pretrial proceedings.
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)
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. Plaintiffs include students, guardians, and school staff seeking overlapping nationwide and statewide class actions. The actions assert virtually identical claims for negligence, breach of contract, and unjust enrichment, focusing discovery on how and when the breach occurred, the adequacy of PowerSchool's security practices, and the timing of notice to affected individuals.
Procedural history
The Panel considered the papers filed and held a hearing session concerning centralization of litigation arising from a cybersecurity incident involving PowerSchool's Student Information System. The Panel granted centralization and transferred the actions listed on Schedule A to the Southern District of California for coordinated or consolidated pretrial proceedings, assigning them, with that court's consent, to Judge Roger T. Benitez.
Remand instructions
The actions listed on Schedule A were transferred to the Southern District of California and, with that court's consent, assigned to the Honorable Roger T. Benitez for coordinated or consolidated pretrial proceedings.