AT&T, other phone companies accused of stolen nude pictures could face liability after court ruling

Wireless providers including T-Mobile, AT&T and Verizon have faced a series of lawsuits in recent years from women who accuse store employees of stealing pictures or videos from their phones while helping them with in-store data transfers.

Cases are often dismissed when companies argue that they had no knowledge of the employee’s actions and are not at fault because the employees were acting outside of their duties. But that could soon change after the court’s latest decision, legal experts told CNBC.

Now, companies – not just store employees – could face liability in future cases, which could lead to dealing with the hiring, training and data protection practices that victims are arguing about. it led to crime, experts said.

The latest lawsuit against AT&T was filed Monday in California state court. A woman identified as Jane Doe says an employee at a Los Angeles store stole her nude photos and moved them in February after she upgraded her iPhone and helped her transfer her data.

That lawsuit, filed by attorneys at the CA Goldberg law firm, now has a good chance of surviving and going to trial after an April court ruling against T-Mobile related to a similar incident in Washington brought by the same law firm. Judge Stanley Bastian, the judge presiding over the T-Mobile case, ruled that it could go forward after the company sought to have the case dismissed.

T-Mobile, like other phone carriers, had argued that it had no knowledge of the employee’s actions and said he was acting outside of his job. But the judge ruled that the company could be held liable and decided that the case should continue.

The decision, described by the law firm as a “significant” decision It is the first of its kind against a wireless retailer accused of negligent hiring of employees who allegedly stole sensitive customer information, the firm said. It could affect the outcome of future cases, including a lawsuit filed against AT&T on Monday, legal experts said.

“The decision sets an important precedent and we intend to continue to try to hold mobile companies accountable for situations like this where their employees violate the privacy of customers during mobile business or transactions. other stores,” said Laura Hecht-Felella of CA Goldberg. one of the lead attorneys behind T-Mobile and the new AT&T case. “There are a lot of different ways that they can try to stop this from happening and it’s clear that whatever they’re doing right now is not enough.”

Carrie Goldberg, the firm’s founder, added that “the hope is not to attract more lawsuits” but to encourage companies to have better protections.

“That’s what lawsuits do. It says you can be held accountable for your negligence,” Goldberg said. “And it’s likely that this will inspire mobile companies to innovate their own security and privacy protections for consumers in their stores.”

In response, an AT&T spokesperson condemned the incident.

“We were shocked to learn of the alleged conduct by an employee of the third-party vendor,” a spokesperson told CNBC. “We hold vendors who work for us to the highest standards and do not tolerate the behavior described here. The vendor confirmed to us that the employee allegedly affected no longer works for them, and they were still work to resolve this issue with the customer.”

T-Mobile declined to comment.

In the case against AT&T, the woman filed a police report, which is still under investigation, according to the lawsuit.

At least six other similar allegations have been filed against AT&T in the past either in civil lawsuits or in police reports, according to the complaint. The logic of those cases is unclear. The cases mirror at least a dozen others that allegedly happened to other providers, such as T-Mobile and Verizon, according to news reports.

Goldberg said he suspects the reported cases are “just the tip of the iceberg,” and it’s possible there are more that consumers haven’t noticed.

“We suspect that the theft activity at mobile phone stores is greater than we realize,” said Goldberg.

“As a society, we trust these mobile providers with all of our private information,” Goldberg said. “And there’s really no limit to what their operators can steal from our phones and share with the world.”

He added that his firm has received “case after case” where customers have accused phone shop employees of stealing their data. Goldberg says the issue is limiting companies, making it an “industry-wide” issue.

Andrew Stengel, a New York attorney who handles cases involving the unauthorized disclosure of intimate images, known as revenge porn, reviewed the T-Mobile decision in Washington for CNBC . He said that future cases, like the AT&T case, now have a better chance of surviving dismissal proceedings and moving forward because attorneys will be able to point to precedent in their arguments.

“It should make judges think twice or thrice before they dismiss the lawsuit,” said Stengel, who has brought a similar case against T-Mobile in the past but is not involved in the current case. “It should give judges not only a break, but guns to agree.”

If the lawsuits against wireless carriers related to near-miss image theft are allowed to proceed, they move on to discovery, which Stengel likened to the “crown jewels” of the case.

During discovery, defendants must turn over documents related to the case, which may reveal shocking and relevant information.

“There may be information that cell phone companies will be required to disclose that will increase liability in the future,” Stengel said. “If I were their lawyer, I would be very concerned about that.”

Stengel cautioned that while the decision in Washington may be “gratifying,” it is not binding and judges in other jurisdictions may choose to ignore it.

However, Goldberg expects the decision to be “influential.” He said it could prompt phone companies to finally make changes to prevent these types of abuse.

“We think cell phone providers can’t be too proud of what they can do,” Goldberg said. “If you’re a company that keeps hiring rando pervs who steal customers’ private pictures, well, that’s the company’s fault.”