IN a recent legal development, defendants in a multi-district litigation regarding a significant data breach of Progress Software's MOVEit file-transfer application have been unsuccessful in their attempt to dismiss negligence claims against them. These claims, which arose under California, Indiana, Michigan, and Ohio laws, were challenged based on the economic-loss doctrine. However, Judge Allison D.
Burroughs of the US District Court for the District of Massachusetts ruled on June 26 that this doctrine does not warrant the dismissal of the claims at this stage in the litigation.