Under Armour Seeks Arbitration in Data Breach Case

On May 21, 2018, the Sports and Entertainment Law Insider reported a putative class action suit filed against Under Armour, relating to a March 2018 data breach of the company’s MyFitnessPal app. On June 28, 2018, Under Armour filed a motion to compel arbitration, along with a motion to dismiss or stay litigation.

In the filing, Under Armour alleges that the named plaintiff, Rebecca Murray, expressly agreed to “a conspicuous arbitration provision” when she registered and used the MyFitnessPal app. The Terms and Conditions of the app indicate that the American Arbitration Association and its rules will exclusively govern any disputes while “any dispute resolution proceedings will be conducted only on an individual basis and not in a class, consolidated or representative action.”

Under Armour argues that Murray registered for the app, had the opportunity to review the Terms and Conditions, assented to the policies, and has now violated the policies by filing a class action lawsuit. Further, Under Armour asserts that the arbitration agreement contained in the Terms and Conditions is valid and enforceable, covers the plaintiff’s claims, and prevents the plaintiff from proceeding with a class action in state or federal court.

In addition, the motion urges the district court to dismiss the claims if it chooses not to compel arbitration. Among other challenges to the plaintiff’s claims, Under Armour asserts that Murray’s claim is deficient because she does not allege any actual damages. According to the motion, “[Murray’s] Complaint contains voluminous allegations about the possible ramifications of a generic date breach, but does not allege that she was actually harmed by this incident…”

Finally, Under Armour alleges that Murray also agreed to a “Governing Law” provision in the Terms and Conditions which states that disputes will be governed by Maryland law. For that reason, Murray’s claims under California’s State Constitution and state laws are allegedly barred. Under Armour added that the same claims would fail under Maryland law for various reasons specific to Maryland’s state statutes.

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