⁍ The 11th Circuit en banc court tossed David Muransky’s class action, even though he and Godiva settled the case in 2016 for $6.2 million.


⁍ Muransky contended that when Congress passed FACTA in 2003, it intended to reduce the risk of identity theft by barring retailers from reproducing more than five digits of customers’ credit card numbers on their receipts.


⁍ The 11th Circuit, however, said the U.S. Supreme Court’s decision in 2016’s Spokeo v. Robinsestablishes that Congress alone cannot confer Article III standing on plaintiffs.


– The 11th Circuit Court of Appeals has thrown out a $6.2 million settlement reached in 2016 between David Muransky and Godiva Chocolatier, ruling that Muransky didn’t have the standing to sue. Muransky sued Godiva under the Fair and Accurate Credit Transactions Act, which prohibits retailers from including more than five digits of a customer’s credit card number on their receipts. Muransky argued that since Congress passed FACTA in 2003, it had intended to reduce the risk of identity theft by barring retailers from reproducing more than five digits of customers’ credit card numbers on their receipts, Reuters reports. But the 11th Circuit ruled Wednesday that Muransky didn’t have the standing to sue because Congress doesn’t have the power to confer standing on plaintiffs. “What Muransky asks is for us to abandon our judicial role by merging the ordinary steps in the analysis— concluding that because the statute protects a concrete interest, any violation automatically threatens that interest and thus supports standing,” Judge Britt Grant wrote. “Although that approach would simplify our job, it is inconsistent with Spokeo and with what the Constitution demands of us.” Muransky and Godiva settled the case for $6.2 million before the Supreme Court issued its 2016 decision in Spokeo v. Robins, which ruled that mere statutory violations do not confer standing. Muransky’s lawyer says the 11th Circuit’s decision makes clear that “the plaintiff has some burden to show actual risk.”



Source: https://www.reuters.com/article/legal-us-otc-godiva/tossing-facta-class-action-en-banc-11th-circuit-says-courts-not-congress-decide-when-risk-is-real-idUSKBN27E3BC