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Smith Gambrell & Russell LLP and two individuals impacted by a 2021 data breach have agreed to voluntarily dismiss a class action lawsuit in California federal court. This decision came Wednesday, as both sides reached a mutual agreement to end the legal proceedings without prejudice, meaning they could revisit the case in the future if necessary.

The lawsuit was initially filed by plaintiffs Charles Owens, a California resident, and Felicia Livingston, a Georgia resident, after the law firm discovered that the breach had compromised the personal and sensitive data of over 100,000 individuals. The breach, which occurred in August 2021, exposed personal information such as names, Social Security numbers, driver's license details, and medical records. However, victims were not notified of the breach until December 2022—17 months later.

Owens, who worked as an employee for Aaron's LLC, a client of Smith Gambrell, alleged that his personal information was compromised due to the firm's mishandling of data. Livingston, who had purchased goods from Aaron's, also became a victim of the breach.

In a significant ruling earlier this year, U.S. District Judge John A. Kronstadt dismissed six of the nine claims brought forth by the plaintiffs. However, he denied the law firm's motion to dismiss the case, recognizing that the plaintiffs had demonstrated legitimate injuries, such as increased risks of future attacks, the diminished value of their private data, and time spent responding to the breach. The judge allowed the negligence and invasion of privacy claims to proceed, citing the sensitivity of the medical information that had been exposed.

Although the plaintiffs’ claims for breach of implied contract and covenant of good faith and fair dealing were dismissed, the court permitted them the chance to refile those claims.

Legal representatives for both sides did not respond immediately to requests for comment following the settlement. The case was dismissed under the agreement that each party would bear their own costs and fees, except where otherwise specified.

Owens and Livingston were represented by attorneys Jason M. Wucetich and Dimitrios V. Korovilas of Wucetich & Korovilas LLP, and Laura G. Van Note of Cole & Van Note. Smith Gambrell & Russell was represented by attorneys Myriah Jaworski, Mason N. Floyd, and Nicole M. Prefontaine from Clark Hill LLP.

The case was filed in the U.S. District Court for the Central District of California, under case number 2:23-cv-01789.