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884 F.3d 893
9th Cir.
2018

IN RE ZAPPOS.COM, INC., CUSTOMER DATA SECURITY BREACH LITIGATION

No. 16-16860

United States Court of Appeals, Ninth Circuit

March 8, 2018

FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

IN RE ZAPPOS.COM, INC., CUSTOMER

DATA SECURITY BREACH

LITIGATION,

THERESA STEVENS; KRISTIN

O’BRIEN; TERRI WADSWORTH;

DAHLIA HABASHY; PATTI HASNER;

SHARI SIMON; STEPHANIE PRIERA;

KATHRYN VORHOFF; DENISE

RELETHFORD; ROBERT REE,

Plaintiffs-Appellants,

v.

ZAPPOS.COM, INC.,

Defendant-Appellee.

No. 16-16860

D.C. No.

3:12-cv-00325-

RCJ-VPC

OPINION

Appeal from the United States District Court

for the District of Nevada

Robert Clive Jones, Senior District Judge, Presiding

Argued and Submitted December 5, 2017

San Francisco, California

Filed March 8, 2018

2 IN RE ZAPPOS.COM

Before: John B. Owens and Michelle T. Friedland, Circuit

Judges, and Elaine E. Bucklo,* District Judge.

Opinion by Judge Friedland

SUMMARY**

Article III Standing

The panel reversed the district court’s dismissal, for lack

of Article III standing, of plaintiffs’ claims alleging that they

were harmed by hacking of their accounts at the online

retailer Zappos.com.

The panel held that under Krottner v. Starbucks Corp., 628 F.3d 1139 (9th Cir. 2010), plaintiffs sufficiently alleged

standing based on the risk of identity theft. The panel

rejected Zappos’s argument that Krottner was no longer

good law after Clapper v. Amnesty International USA, 568

U.S. 398 (2013). And the panel held that plaintiffs

sufficiently alleged an injury in fact under Krottner, based

on a substantial risk that the Zappos hackers will commit

identity fraud or identity theft. The panel assessed plaintiffs’

standing as of the time the complaints were filed, not as of

the present. The panel further held that plaintiffs sufficiently

alleged that the risk of future harm they faced was “fairly

traceable” to the conduct being challenged; and the risk from

the Northern District of Illinois, sitting by designation.

has been prepared by court staff for the convenience of the reader.

IN RE ZAPPOS.COM 3

the injury of identity theft was also redressable by relief that

could be obtained through this litigation.

The panel addressed an issue raised by sealed briefing in

a concurrently filed memorandum disposition.

COUNSEL

Douglas Gregory Blankinship (argued), Finkelstein

Blankinship Frei-Pearson and Garber LLP, White Plains,

New York; David C. O’Mara, The O’Mara Law Firm P.C.,

Reno, Nevada; Ben Barnow, Barnow and Associates P.C.,

Chicago, Illinois; Richard L. Coffman, The Coffman Law

Firm, Beaumont, Texas; Marc L. Godino, Glancy Binkow &

Goldberg LLP, Los Angeles, California; for Plaintiffs-Appellants.

Stephen J. Newman (argued), David W. Moon, Brian C.

Frontino, and Julia B. Strickland, Stroock & Stroock &

Lavan LLP, Los Angeles, California; Robert McCoy,

Kaempfer Crowell, Las Vegas, Nevada; for Defendant-Appellee.

4 IN RE ZAPPOS.COM

OPINION

FRIEDLAND, Circuit Judge:

In January 2012, hackers breached the servers of online

retailer Zappos.com, Inc. (“Zappos”) and allegedly stole the

names, account numbers, passwords, email addresses,

billing and shipping addresses, telephone numbers, and

credit and debit card information of more than 24 million

Zappos customers. Several of those customers filed putative

class actions in federal courts across the country, asserting

that Zappos had not adequately protected their personal

information. Their lawsuits were consolidated for pretrial

proceedings.

Although some of the plaintiffs alleged that the hackers

used stolen information about them to conduct subsequent

financial transactions, the plaintiffs who are the focus of this

appeal (“Plaintiffs”) did not. This appeal concerns claims

based on the hacking incident itself, not any subsequent

illegal activity.

The district court dismissed Plaintiffs’ claims for lack of

Article III standing. In this appeal, Plaintiffs contend that

the district court erred in doing so, and they press several

potential bases for standing, including that the Zappos data

breach put them at risk of identity theft.

We addressed standing in an analogous context in

Krottner v. Starbucks Corp., 628 F.3d 1139 (9th Cir. 2010).

There, we held that employees of Starbucks had standing to

sue the company based on the risk of identity theft they faced

after a company laptop containing their personal information

was stolen. Id. at 1140, 1143. We reject Zappos’s argument

that Krottner is no longer good law after Clapper v. Amnesty

International USA, 568 U.S. 398 (2013), and hold that, under

IN RE ZAPPOS.COM 5

Krottner, Plaintiffs have sufficiently alleged standing based

on the risk of identity theft.1

I.

When they bought merchandise on Zappos’s website,

customers provided personal identifying information

(“PII”), including their names, account numbers, passwords,

email addresses, billing and shipping addresses, telephone

numbers, and credit and debit card information. Sometime

before January 16, 2012, hackers targeted Zappos’s servers,

stealing the PII of more than 24 million of its customers,

including their full credit card numbers.2

On January 16,

Zappos sent an email to its customers, notifying them of the

theft of their PII. The company recommended “that they

reset their Zappos.com account passwords and change the

passwords ‘on any other web site where [they] use the same

or a similar password.’” Some customers responded almost

immediately by filing putative class actions in federal district

courts across the country.

filed memorandum disposition.

last four digits of customers’ credit card numbers, it has presented its

arguments as a facial, not a factual, attack on standing. See Safe Air for

Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004) (distinguishing

facial from factual attacks on standing). Where, as here, “a defendant in

its motion to dismiss under Federal Rule of Civil Procedure 12(b)(1)

asserts that the allegations in the complaint are insufficient to establish

subject matter jurisdiction as a matter of law (to be distinguished from a

claim that the allegations on which jurisdiction depends are not true as a

matter of fact), we take the allegations in the plaintiff’s complaint as

true.” Whisnant v. United States, 400 F.3d 1177, 1179 (9th Cir. 2005).

6 IN RE ZAPPOS.COM

In these suits, Plaintiffs alleged an “imminent” risk of

identity theft or fraud from the Zappos breach. Relying on

definitions from the United States Government

Accountability Office (“GAO”), they characterized “identity

theft” and “identity fraud” as “encompassing various types

of criminal activities, such as when PII is used to commit

fraud or other crimes,” including “credit card fraud, phone

or utilities fraud, bank fraud and government fraud.”3

The Judicial Panel on Multidistrict Litigation transferred

several putative class action lawsuits alleging harms from

the Zappos data breach to the District of Nevada for pretrial

proceedings. After several years of pleadings-stage

litigation, including a hiatus for mediation, the district court

granted in part and denied in part Zappos’s motion to dismiss

the Third Amended Consolidated Complaint (“Complaint”)

and granted Zappos’s motion to strike the Complaint’s class

allegations. The court distinguished between two groups of

plaintiffs: (1) plaintiffs named only in the Third Amended

Complaint who alleged that they had already suffered

financial losses from identity theft caused by Zappos’s

breach, and (2) plaintiffs named in earlier complaints who

did not allege having already suffered financial losses from

identity theft.

to the description of identity theft in a report entitled Personal

Information, which explains that “[t]he term ‘identity theft’ is broad and

encompasses many types of criminal activities, including fraud on

existing accounts—such as unauthorized use of a stolen credit card

number—or fraudulent creation of new accounts—such as using stolen

data to open a credit card account in someone else’s name.” U.S. Gov’t

Accountability Office, GAO-07-737, Personal Information: Data

Breaches are Frequent, but Evidence of Resulting Identity Theft is

Limited; However, the Full Extent is Unknown 2 (2007).

IN RE ZAPPOS.COM 7

The district court ruled that the first group of plaintiffs

had Article III standing because they alleged “that actual

fraud occurred as a direct result of the breach.” But the court

ruled that the second group of plaintiffs (again, here referred

to as “Plaintiffs”) lacked Article III standing and dismissed

their claims without leave to amend because Plaintiffs had

“failed to allege instances of actual identity theft or fraud.”

The parties then agreed to dismiss all remaining claims with

prejudice, and Plaintiffs appealed.

II.

We review the district court’s standing determination de

novo. See Maya v. Centex Corp., 658 F.3d 1060, 1067 (9th

Cir. 2011). To have Article III standing,

a plaintiff must show (1) it has suffered an

“injury in fact” that is (a) concrete and

particularized and (b) actual or imminent, not

conjectural or hypothetical; (2) the injury is

fairly traceable to the challenged action of the

defendant; and (3) it is likely, as opposed to

merely speculative, that the injury will be

redressed by a favorable decision.

Friends of the Earth, Inc. v. Laidlaw Envtl. Servs. (TOC),

Inc., 528 U.S. 167, 180–81 (2000); see also Spokeo, Inc. v.

Robins, 136 S. Ct. 1540, 1547 (2016). A plaintiff threatened

with future injury has standing to sue “if the threatened

injury is ‘certainly impending,’ or there is a ‘substantial risk

that the harm will occur.’” Susan B. Anthony List v.

Driehaus, 134 S. Ct. 2334, 2341 (2014) (quoting Clapper v.

Amnesty Int’l USA, 568 U.S. 398, 414 & n.5 (2013))

(internal quotation marks omitted).

8 IN RE ZAPPOS.COM

III.

We addressed the Article III standing of victims of data

theft in Krottner v. Starbucks Corp., 628 F.3d 1139 (9th Cir.

2010). In Krottner, a thief stole a laptop containing “the

unencrypted names, addresses, and social security numbers

of approximately 97,000 Starbucks employees.” Id. at 1140.

“Starbucks sent a letter to . . . affected employees alerting

them to the theft and stating that Starbucks had no indication

that the private information ha[d] been misused,” but

advising them to “monitor [their] financial accounts

carefully for suspicious activity and take appropriate steps to

protect [themselves] against potential identity theft.” Id. at

1140–41 (internal quotation marks omitted). Some

employees sued, and the only harm that most alleged was an

“increased risk of future identity theft.” Id. at 1142. We

determined this was sufficient for Article III standing,

holding that the plaintiffs had “alleged a credible threat of

real and immediate harm” because the laptop with their PII

had been stolen. Id. at 1143.

A.

Before analyzing whether Krottner controls this case, we

must determine whether Krottner remains good law after the

Supreme Court’s more recent decision in Clapper v.

Amnesty International USA, 568 U.S. 398 (2013), which

addressed a question of standing based on the risk of future

harm.

As a three-judge panel, we are bound by opinions of our

court on issues of federal law unless those opinions are

“clearly irreconcilable” with a later decision by the Supreme

Court. Miller v. Gammie, 335 F.3d 889, 900 (9th Cir. 2003)

(en banc). This is the first case to require us to consider

IN RE ZAPPOS.COM 9

whether Clapper and Krottner are clearly irreconcilable, and

we conclude that they are not.

The plaintiffs in Clapper challenged surveillance

procedures authorized by the Foreign Intelligence

Surveillance Act of 1978—specifically, in 50 U.S.C.

§ 1881a (2012) (amended 2018).4

Clapper, 568 U.S. at 401.

The plaintiffs, who were “attorneys and human rights, labor,

legal, and media organizations whose work allegedly

require[d] them to engage in sensitive and sometimes

privileged telephone and e-mail communications with . . .

individuals located abroad,” sued for declaratory relief to

invalidate § 1881a and an injunction against surveillance

conducted pursuant to that section. Id. at 401, 406. The

plaintiffs argued that they had Article III standing to

challenge § 1881a “because there [was] an objectively

reasonable likelihood that their communications [would] be

acquired under § 1881a at some point in the future.” Id. at

401. The Supreme Court rejected this basis for standing,

explaining that “an objectively reasonable likelihood” of

injury was insufficient, and that the alleged harm needed to

“satisfy the well-established requirement that threatened

injury must be ‘certainly impending.’” Id. (quoting

Whitmore v. Arkansas, 495 U.S. 149, 158 (1990)).

nationals located abroad under a reduced government burden compared

with traditional electronic foreign intelligence surveillance. Compare

50 U.S.C. § 1805 (2012) (amended 2018) (requiring “probable cause to

believe . . . the target of the electronic surveillance is a foreign power or

an agent of a foreign power”), with 50 U.S.C. § 1881a (requiring that

surveillance not intentionally target people in the United States or United

States nationals but not requiring any showing that the surveillance target

is a foreign power or agent of a foreign power).

10 IN RE ZAPPOS.COM

The Court then held that the plaintiffs’ theory of injury

was too speculative to constitute a “certainly impending”

injury. Id. at 410. The plaintiffs had not alleged that any of

their communications had yet been intercepted. Id. at 411.

The Court characterized their alleged injury as instead

resting on a series of inferences, including that:

(1) the Government will decide to target the

communications of non-U.S. persons with

whom they communicate; (2) in doing so, the

Government will choose to invoke its

authority under § 1881a rather than utilizing

another method of surveillance; (3) the

Article III judges who serve on the Foreign

Intelligence Surveillance Court will conclude

that the Government’s proposed surveillance

procedures satisfy § 1881a’s many

safeguards and are consistent with the Fourth

Amendment; (4) the Government will

succeed in intercepting the communications

of respondents’ contacts; and (5) respondents

will be parties to the particular

communications that the Government

intercepts.

Id. at 410. The Court declined to speculate about what it

described as independent choices by the government about

whom to target for surveillance and what basis to invoke for

such targeting, or about whether the Foreign Intelligence

Surveillance Court would approve any such surveillance. Id.

at 412–13. The plaintiffs’ multi-link chain of inferences was

thus “too speculative” to constitute a cognizable injury in

fact. Id. at 401.

IN RE ZAPPOS.COM 11

Unlike in Clapper, the plaintiffs’ alleged injury in

Krottner did not require a speculative multi-link chain of

inferences. See Krottner, 628 F.3d at 1143. The Krottner

laptop thief had all the information he needed to open

accounts or spend money in the plaintiffs’ names—actions

that Krottner collectively treats as “identity theft.” Id. at

1142. Moreover, Clapper’s standing analysis was

“especially rigorous” because the case arose in a sensitive

national security context involving intelligence gathering

and foreign affairs, and because the plaintiffs were asking

the courts to declare actions of the executive and legislative

branches unconstitutional. Clapper, 568 U.S. at 408

(quoting Raines v. Byrd, 521 U.S. 811, 819 (1997)).

Krottner presented no such national security or separation of

powers concerns.

And although the Supreme Court focused in Clapper on

whether the injury was “certainly impending,” it

acknowledged that other cases had focused on whether there

was a “substantial risk” of injury.5

Id. at 414 & n.5. Since

Clapper, the Court reemphasized in Susan B. Anthony List v.

Driehaus, 134 S. Ct. 2334 (2014), that “[a]n allegation of

future injury may suffice if the threatened injury is ‘certainly

impending,’ or there is a ‘substantial risk that the harm will

occur.’” Id. at 2341 (quoting Clapper, 568 U.S. at 414 &

n.5) (internal quotation marks omitted).

substantial risk because their theory of injury relied on too many

inferences. Clapper, 568 U.S. at 414 n.5.

12 IN RE ZAPPOS.COM

For all these reasons, we hold that Krottner is not clearly

irreconcilable with Clapper and thus remains binding.6

See

Miller, 335 F.3d at 900.

B.

We also conclude that Krottner controls the result here.

In Krottner, we held that the plaintiffs had “alleged a

credible threat of real and immediate harm stemming from

the theft of a laptop containing their unencrypted personal

data.” 628 F.3d at 1143. The threat would have been “far

less credible,” we explained, “if no laptop had been stolen,

and [they] had sued based on the risk that it would be stolen

Clapper is consistent with post-Clapper decisions in our sister circuits

holding that data breaches in which hackers targeted PII created a risk of

harm sufficient to support standing. For example, the D.C. Circuit held

in Attias v. Carefirst, Inc., 865 F.3d 620 (D.C. Cir. 2017), cert. denied,

No. 17-641, 2018 WL 942459 (U.S. Feb. 20, 2018), that “[n]o long

sequence of uncertain contingencies involving multiple independent

actors has to occur before the plaintiffs [who were victims of a data

breach] will suffer any harm; a substantial risk of harm exists already,

simply by virtue of the hack and the nature of the data that the plaintiffs

allege was taken.” Id. at 629; see also Remijas v. Neiman Marcus Grp.,

LLC, 794 F.3d 688, 693 (7th Cir. 2015) (“Why else would hackers break

into a store’s database and steal consumers’ private information?

Presumably, the purpose of the hack is, sooner or later, to make

fraudulent charges or assume those consumers’ identities.”). The Eighth

Circuit did hold in In re SuperValu, Inc., Customer Data Security Breach

Litigation, 870 F.3d 763 (8th Cir. 2017), that allegations of the theft of

credit card information were insufficient to support standing. Id. at 771–

72. But no other PII, such as addresses, telephone numbers, or

passwords, was stolen in that case. See id. at 766, 770. The Eighth

Circuit acknowledged cases like Attias and Remijas but opined that

standing questions in data breach cases “ultimately turn[] on the

substance of the allegations before each court”—particularly, the types

of data allegedly stolen. Id. at 769.

IN RE ZAPPOS.COM 13

at some point in the future.” Id. But the sensitivity of the

personal information, combined with its theft, led us to

conclude that the plaintiffs had adequately alleged an injury

in fact supporting standing. Id. The sensitivity of the stolen

data in this case is sufficiently similar to that in Krottner to

require the same conclusion here.

Plaintiffs allege that the type of information accessed in

the Zappos breach can be used to commit identity theft,

including by placing them at higher risk of “phishing” and

“pharming,” which are ways for hackers to exploit

information they already have to get even more PII.

Plaintiffs also allege that their credit card numbers were

within the information taken in the breach—which was not

true in Krottner.7

And Congress has treated credit card

numbers as sufficiently sensitive to warrant legislation

prohibiting merchants from printing such numbers on

receipts—specifically to reduce the risk of identity theft. See

15 U.S.C. § 1681c(g) (2012). Although there is no

allegation in this case that the stolen information included

social security numbers, as there was in Krottner, the

information taken in the data breach still gave hackers the

means to commit fraud or identity theft, as Zappos itself

effectively acknowledged by urging affected customers to

change their passwords on any other account where they

may have used “the same or a similar password.”8

from other customers saying that their credit cards were fraudulently

used following the breach.

accordance with the GAO definition Plaintiffs rely on in the Complaint.

See supra note 3 and accompanying text.

14 IN RE ZAPPOS.COM

Indeed, the plaintiffs who alleged that the hackers had

already commandeered their accounts or identities using

information taken from Zappos specifically alleged that they

suffered financial losses because of the Zappos data breach

(which is why the district court held that they had standing).

Although those plaintiffs’ claims are not at issue in this

appeal, their alleged harm undermines Zappos’s assertion

that the data stolen in the breach cannot be used for fraud or

identity theft. In addition, two plaintiffs whose claims are at

issue in this appeal say that the hackers took over their AOL

accounts and sent advertisements to people in their address

books.9

Though not a financial harm, these alleged attacks

further support Plaintiffs’ contention that the hackers

accessed information that could be used to help commit

identity fraud or identity theft. We thus conclude that

Plaintiffs have sufficiently alleged an injury in fact under

Krottner.

Zappos contends that even if the stolen data was as

sensitive as that in Krottner, too much time has passed since

the breach for any harm to be imminent. Zappos is mistaken.

Our jurisdiction “depends upon the state of things at the time

of the action brought.”10

Mollan v. Torrance, 22 U.S. 537,

539 (1824). The initial complaint against Zappos was filed

on the same day that Zappos provided notice of the breach.

Other Plaintiffs’ complaints were filed soon thereafter. We

standing because they had not suffered “additional misuse” or “actual

damages” from the data breach.

year gap between the breach and the appeal, focusing instead on the

sensitivity of the stolen information. See 628 F.3d at 1143.

IN RE ZAPPOS.COM 15

therefore assess Plaintiffs’ standing as of January 2012, not

as of the present.11

Plaintiffs also specifically allege that “[a] person whose

PII has been obtained and compromised may not see the full

extent of identity theft or identity fraud for years.” And “it

may take some time for the victim to become aware of the

theft.”

Assessing the sum of their allegations in light of

Krottner, Plaintiffs have sufficiently alleged an injury in fact

based on a substantial risk that the Zappos hackers will

commit identity fraud or identity theft.12

Complaint’s allegations will not sustain Plaintiffs’ standing on their own.

See Lujan v. Defs. of Wildlife, 504 U.S. 555, 561 (1992) (“[E]ach element

[of Article III standing] must be supported in the same way as any other

matter on which the plaintiff bears the burden of proof, i.e., with the

manner and degree of evidence required at the successive stages of the

litigation.”). In opposing a motion for summary judgment, for example,

Plaintiffs would need to come forward with evidence to support standing.

See id. But the passage of time does not change the relevant moment as

to which Plaintiffs must establish that they had standing or heighten

Plaintiffs’ burden in opposing the motion to dismiss. See id.; Mollan,

22 U.S. at 539. A case may also, of course, become moot as time

progresses. But there is no reason to doubt that Plaintiffs still have a live

controversy against Zappos here. Cf. Z Channel Ltd. P’ship v. Home

Box Office, Inc., 931 F.2d 1338, 1341 (9th Cir. 1991) (“If [a plaintiff] is

entitled to collect damages in the event that it succeeds on the merits, the

case does not become moot even though declaratory and injunctive relief

are no longer of any use.”).

Beck v. McDonald, 848 F.3d 262 (4th Cir. 2017), cert. denied sub nom.

Beck v. Shulkin, 137 S. Ct. 2307 (2017). The plaintiffs in Beck, patients

with personal data on a laptop stolen from a hospital, did not allege that

the “thief intentionally targeted the personal information compromised

16 IN RE ZAPPOS.COM

C.

The remaining Article III standing requirements are also

satisfied. Plaintiffs sufficiently allege that the risk of future

harm they face is “‘fairly traceable’ to the conduct being

challenged”—here, Zappos’s failure to prevent the breach.

Wittman v. Personhuballah, 136 S. Ct. 1732, 1736 (2016)

(quoting Lujan v. Defs. of Wildlife, 504 U.S. 555, 560–61

(1992)).

That hackers might have stolen Plaintiffs’ PII in

unrelated breaches, and that Plaintiffs might suffer identity

theft or fraud caused by the data stolen in those other

breaches (rather than the data stolen from Zappos), is less

about standing and more about the merits of causation and

damages. As the Seventh Circuit recognized in Remijas v.

Neiman Marcus Group, LLC, 794 F.3d 688 (7th Cir. 2015),

that “some other store might [also] have caused the

plaintiffs’ private information to be exposed does nothing to

negate the plaintiffs’ standing to sue” for the breach in

in the data breaches.” Id. at 274. The Fourth Circuit held that the

absence of such an allegation “render[ed] their contention of an

enhanced risk of future identity theft too speculative.” Id. Here, by

contrast, Plaintiffs allege that hackers specifically targeted their PII on

Zappos’s servers. It is true that in Beck the Fourth Circuit opined that

“‘as the breaches fade further into the past,’ the Plaintiffs’ threatened

injuries become more and more speculative.” Id. at 275 (quoting

Chambliss v. Carefirst, Inc., 189 F. Supp. 3d 564, 570 (D. Md. 2016),

and citing In re Zappos.com, Inc., 108 F. Supp. 3d 949, 958 (D. Nev.

2015)). But the time since the data breach appears to have mattered in

Beck because the court concluded that the plaintiffs lacked standing after

the breach in the first place, so it made sense to consider whether any

subsequent events suggested a greater injury than was initially apparent.

See id. at 274.

IN RE ZAPPOS.COM 17

question.13

Id. at 696; cf. Price Waterhouse v. Hopkins,

490 U.S. 228, 263 (1989) (O’Connor, J., concurring in the

judgment) (“[I]n multiple causation cases, . . . the common

law of torts has long shifted the burden of proof to multiple

defendants to prove that their negligent actions were not the

‘but-for’ cause of the plaintiff’s injury.” (citing Summers v.

Tice, 199 P.2d 1, 3–4 (Cal. 1948))), superseded on other

grounds by 42 U.S.C. § 2000e-2(m) (2012).

The injury from the risk of identity theft is also

redressable by relief that could be obtained through this

litigation. See Lujan, 504 U.S. at 561. If Plaintiffs succeed

on the merits, any proven injury could be compensated

through damages. See Remijas, 794 F.3d at 696–97. And at

least some of their requested injunctive relief would limit the

extent of the threatened injury by helping Plaintiffs to

held that, even assuming the plaintiffs were going to be surveilled, any

future surveillance could not be traced to the challenged statute because

the risk of being surveilled did not increase with the addition of the new

statutory tool. 568 U.S. at 413 (“[B]ecause respondents can only

speculate as to whether any (asserted) interception would be under

§ 1881a or some other authority, they cannot satisfy the ‘fairly traceable’

requirement.”). There were many surveillance options, all of which were

in the hands of one actor: the government. Thus, a plaintiff’s risk of

surveillance hinged on whether the government chose to surveil him in

the first place. In contrast, with each new hack comes a new hacker, each

of whom independently could choose to use the data to commit identity

theft. This means that each hacking incident adds to the overall risk of

identity theft. And again, as explained above, the key injury recognized

in Krottner is the risk of being subject to identity theft, not actual identity

theft.

18 IN RE ZAPPOS.COM

monitor their credit and the like.14

See Monsanto Co. v.

Geertson Seed Farms, 561 U.S. 139, 154–55 (2010).

IV.

For the foregoing reasons, we REVERSE the district

court’s judgment as to Plaintiffs’ standing and REMAND.

Cty. v. Babbitt, 48 F.3d 1495, 1500 (9th Cir. 1995). Because Plaintiffs

sufficiently allege standing from the risk of future identity theft, we do

not reach their other asserted bases for standing.

Notes

1
We address an issue raised by sealed briefing in a concurrently
2
Although Zappos asserts in its briefs that the hackers stole only the
3
Plaintiffs did not provide a precise cite but appear to be referring
4
50 U.S.C. § 1881a authorizes electronic surveillance of foreign
5
The Court noted that the plaintiffs in Clapper had not alleged a
6
Our conclusion that Krottner is not clearly irreconcilable with
7
Plaintiffs include in the Complaint some emails sent to Zappos
8
We use the terms “identity fraud” and “identity theft” in
9
The district court held that these plaintiffs nonetheless lacked
10
Consistent with this principle, Krottner did not discuss the two-
11
Of course, as litigation proceeds beyond the pleadings stage, the
12
This conclusion is consistent with the Fourth Circuit’s decision in
13
Clapper is not to the contrary. In Clapper, the Supreme Court
14
Plaintiffs need only one viable basis for standing. See Douglas
*
The Honorable Elaine E. Bucklo, United States District Judge for
**
This summary constitutes no part of the opinion of the court. It

Case Details

Case Name: Theresa Stevens v. zappos.com., Inc.
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Mar 8, 2018
Citations: 884 F.3d 893; 16-16860
Docket Number: 16-16860
Court Abbreviation: 9th Cir.
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