Class Action Lawsuit Over StockX’s Data Security Breach Dismissed

StockX’s legal saga in connection with a data breach that affected millions of users in 2019 is one step closer to wrapping up after a federal judge in charge of the case dismissed the consolidated class action lawsuit. 

According to The Fashion Law, Michigan District Judge Victoria Roberts has granted StockX’s motion to dismiss the complaints against the secondary marketplace citing that StockX’s terms of service “always included an arbitration agreement, a delegation provision, a class action waiver, and instructions for how to opt out of the arbitration agreement.”

Before the case was able to make its way to arbitration, the plaintiffs, which included two minors, appealed to the U.S. Court of Appeals for the Sixth Circuit, arguing that there’s no evidence whether four of the plaintiffs accepted StockX’s terms of service. The plaintiffs further argued that the company’s terms of service can’t be enforced due to their infancy.

Last week, a ruling from judges for the Sixth Circuit declined to side with any of the plaintiffs’ arguments about the validity or enforceability of StockX’s terms and upheld the lower court’s decision to dismiss the case and continued with the arbitration.

Although the consolidated class action case has been moved to arbitration, another lawsuit against the company filed by former user Laura Esquer was not yet dismissed due to differences between laws in Michigan and California, where StockX and Esquer are based, respectively. In June, a judge ruled that “application of Michigan law would be contrary to fundamental California policy and California has a materially greater interest in Esquer’s claims than Michigan,” thus “StockX’s choice of law clause is unenforceable” in the Esquer case.