Proposed federal legislation creating notice standards following data breaches may hit roadblocks with state law conflicts, Saikali noted. "The states together have more enforcement power, many oppose preempting state laws in this area, and there is no consensus over certain important issues, like whether civil remedies should be provided or what role the government should play in enforcing the law," he told Law360.
Saikali also commented on the effects of a Minnesota federal court's December 2014 refusal to dismiss litigation brought by financial institutions against Target stemming from the data breach that occurred at its stores during the 2013 holiday season. "The ramifications of the decision on the business community could be huge," he said. "It could help pave the way for banks to pursue merchants in court for costs suffered as a result of a merchant's data breach."