Item 1. Legal Proceedings
Item 1. Legal Proceedings
In April 2020, we were named as a defendant in four federal class action lawsuits, each of which was subsequently dismissed. Each one was brought in response to a data breach we experienced in January 2020. The four dismissed lawsuits are as follows:
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On April 1, 2020, C.H., individually, and on behalf of all others similarly situated v. Tandem Diabetes Care, Inc. was filed against us in the Southern District of the United States District Court. The complaint alleged negligence and violations of the California Confidentiality of Medical Information Act (CMIA). Plaintiff filed a Notice of Voluntary Dismissal on May 22, 2020.
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On April 8, 2020, Joseph Deluna, on behalf of himself and all others similarly situated v. Tandem Diabetes Care, Inc. was filed against us in the Central District of the United States District Court. The complaint alleged negligence and violations of the CMIA and the Federal Trade Commission Act (FTCA). Plaintiff filed a Notice of Voluntary Dismissal on May 22, 2020.
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On April 16, 2020, Jose Lopez, individually and on behalf of all others similarly situated v. Tandem Diabetes Care, Inc. was filed against us in the Southern District of the United States District Court. The complaint alleged negligence and violations of the FTCA, CMIA, California’s Unfair Competition Law (UCL), California’s Consumer Record Act, and the California Consumer Privacy Act of 2018 (CCPA). This complaint also alleged that the security incident created a breach of contract and a breach of the implied covenant of good faith and fair dealing. Plaintiff filed a Notice of Voluntary Dismissal on May 22, 2020.
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On April 16, 2020, Samantha Henrichsen, and her minor son, A.R., individually, and on behalf of all others similarly situated v. Tandem Diabetes Care, Inc. was filed against us in the Southern District of the United States District Court. The complaint alleged negligence and violations of the CMIA, the Illinois Consumer Fraud and Deceptive Business Practices Act, and the Illinois Uniform Deceptive Trade Practices Act. This complaint also alleged that the security incident created a breach of contract. Plaintiffs filed a Notice of Voluntary Dismissal on May 22, 2020.
We have been named as a defendant in three California state court class action lawsuits arising from the data breach we experienced in January 2020. Collectively, these lawsuits seek statutory, compensatory, actual, and punitive damages; equitable relief, including restitution; pre- and post-judgment interest; injunctive relief; and attorney fees, costs, and expenses from us. The three pending lawsuits are as follows:
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On May 8, 2020, Stephanie Matthews, individually and on behalf of all others similarly situated vs. Tandem Diabetes Care, Inc. was filed against us in the Superior Court of the State of California for the County of Sacramento. The complaint alleged violations of the CMIA and UCL.
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On May 22, 2020, Joseph Deluna, Conor Soraghan, Salvador Rodriguez, individually, and on behalf of all others similarly situated vs. Tandem Diabetes Care, Inc. was filed against us in the Superior Court of the State of California for the County of San Bernardino. The complaint alleged violations of the CMIA, CCPA, UCL, and breach of contract.
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On May 27, 2020, Jane Doe 1 , i ndividually and on behalf of all others similarly situated vs. Tandem Diabetes Care, Inc. was filed against us in the Superior Court of the State of California for the County of Kings. A First Amended Complaint (FAC) was filed on June 12, 2020. The FAC alleged violations of the CMIA, UCL, and CCPA.
Although we intend to vigorously defend against these claims, there is no guarantee that we will prevail. Accordingly, we are unable to determine the ultimate outcome of these lawsuits or determine the amount and range of potential losses associated with the lawsuits.
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From time to time, we are involved in various other legal proceedings, disputes and other claims arising in the ordinary course of our business, including actions with respect to intellectual property, data privacy, employment, product liability and contractual matters. Although the results of legal proceedings, disputes and other claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not, individually or in the aggregate, have a material adverse effect on our business, financial position, results of operations, cash flows or future prospects. However, regardless of the outcome, legal proceedings, disputes and other claims can have an adverse impact on us because of legal costs, diversion of management time and resources, and other factors.
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Table of contents
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.