Court holds that plaintiff must allege a concrete injury to have standing to sue for a statutory violation; remands for further proceedings
In its just-issued decision in Spokeo, Inc. v. Robins, No. 13-1339, slip op. (May 16, 2016), the Supreme Court has held that a plaintiff bringing suit under a federal statute must allege the existence of a concrete injury in order to have Article III standing to bring that statutory claim.
This ruling disturbs assumptions that animate federal minimum damages statutory class actions. The conventional wisdom has been that if a defendant violates a statute, plaintiff cashes a check. For years, plaintiffs’ class action lawyers have argued that it’s just that simple. A cottage industry in class action litigation has grown up around a daunting alphabet soup of federal enactments – such as the TCPA, FCRA , FACTA and RESPA — which prescribe minimum money damage awards for statutory violations. Statutory awards ranging from $100 to $1,500 per violation for actions such as failing to truncate credit card numbers on transaction receipts (FACTA) or sending unsolicited texts (TCPA) can add up to astronomic exposure when aggregated over classes of tens of thousands of individuals.