The court ruling may hold AT&T and other phone companies liable for stolen nude images.
- At least six other cases have been brought against the wireless provider in the past for similar allegations.
- After a recent court ruling against T-Mobile, phone companies may face more liability when their employees steal sensitive customer data.
In recent years, women have filed lawsuits against wireless providers such as , and , accusing retail employees of stealing intimate images or videos from their phones while assisting them with in-store data transfers.
A recent court ruling could soon change the practice of dismissing cases when companies claim they weren't aware of staffers' actions and aren't liable because the employees were acting outside their duties.
The experts stated that in future litigation, not only store workers but also companies could face liability, which may prompt them to address their hiring, training, and data safety practices that the victims allege caused the violations.
On Monday, a lawsuit was filed against AT&T in California state court by a woman named Jane Doe. She claimed that an employee at an AT&T store in Los Angeles stole her nude images and distributed them in February after she upgraded her iPhone and he assisted her with transferring her data.
The lawsuit filed by attorneys from the C.A. Goldberg law firm against T-Mobile has a better chance of going to trial after a court ruling in April that allowed a similar case brought by the same law firm against the company in Washington to proceed. Judge Stanley Bastian, who is presiding over the T-Mobile case, ruled that it could move forward after the company attempted to have the lawsuit dismissed.
The judge ruled that T-Mobile could potentially be held liable for the actions of one of its employees, despite the company's argument that they were unaware of the employee's actions and that he was acting outside the scope of his duties.
The law firm described the ruling as a "landmark" decision, marking the first time a wireless carrier has been held accountable for negligence in hiring employees accused of stealing sensitive customer data. This decision could have a significant impact on future cases, including the lawsuit filed against AT&T on Monday, legal experts said.
"Laura Hecht-Felella from C.A. Goldberg, one of the lead attorneys behind both the T-Mobile and the new AT&T case, stated that the decision sets an important precedent and they intend to continue to hold phone companies accountable for situations like this where their employees violate customer privacy during phone trade-ins or other transactions at the stores. She emphasized that there are various ways in which phone companies can prevent such incidents from happening and it is clear that their current measures are not sufficient."
Carrie Goldberg, the founder of the firm, stated that the aim was not to attract more cases but to motivate companies to implement better safety measures.
"Goldberg stated that litigation holds individuals accountable for their negligence by saying, "That's what litigation does." He added, "And presumably that will motivate phone companies to enhance their safety and privacy safeguards for customers in their stores.""
Neither AT&T nor T-Mobile responded to requests for comment.
Mounting allegations
The lawsuit alleges that a woman filed a police report against AT&T, which is still being investigated.
The complaint alleges that at least six other similar accusations have been made against AT&T in the past, either in civil lawsuits or police reports. However, the outcomes of these cases are unclear. News reports suggest that at least a dozen more alleged incidents have occurred at other providers, such as T-Mobile and Verizon.
Goldberg believes that the cases that have been made public are only a small portion of the problem, and there are probably many more instances that customers were unaware of.
Goldberg stated that the extent of theft at cellular phone stores is beyond our understanding.
""We entrust our most private information to cellular providers, and their employees have the potential to steal and share it with the world," stated Goldberg."
Goldberg stated that the problem of customers alleging that phone store employees stole their data is an "industry-wide" concern, as her firm has received "case after case after case" of such complaints.
A New York attorney who specializes in revenge porn cases, Andrew Stengel, reviewed the T-Mobile Washington decision for CNBC. He stated that future cases, such as the AT&T lawsuit, have a better chance of surviving motions to dismiss and progressing because attorneys can now point to that precedent in their arguments.
"Stengel stated that the case should give judges pause and provide ammunition to agree."
If lawsuits against wireless carriers related to the theft of intimate images are allowed to proceed, they move into discovery, which Stengel likened to the "crown jewels" of a legal case.
During the investigation, defendants must provide documents that are pertinent to the case, which may contain incriminating and damaging information.
"If I were their attorney, I would be very concerned about the potential increase in liability that could result from the disclosure of information by cell phone companies, as stated by Stengel."
While the Washington decision may be "thrilling," it's not legally binding and judges in other regions can disregard it.
Goldberg anticipates the decision to be influential and believes it could motivate phone companies to implement changes to prevent such abuses.
"According to Goldberg, cellular providers will become less arrogant about their actions, as they will be held accountable for their actions. If a company consistently hires perverts who steal consumers' private and intimate pictures, it is their fault."
Business News
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