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Court Should Deny AMC's Motion to Compel Arbitration, Says ex-Employee

Plaintiff Melanie Newman gave her Social Security number and other personal information to AMC Theatres when she began working for the company, but the theater chain incurred a data breach “well after” her employment ended, said Newman’s response Thursday (docket…

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2:23-cv-02358) in U.S. District Court for Kansas in Kansas City to AMC's Nov. 21 motion to compel her claims to arbitration. Newman’s Aug. 17 complaint alleges AMC failed to properly secure and safeguard her personally identifiable information that was compromised in Progress Software’s MOVEit May file transfer software data breach. The theater chain “now seeks to avoid” answering to Newman’s claims arising out of the MOVEit data breach “by attempting to tie its failure to implement reasonable data security to Plaintiff’s role as an employee of the company,” said the response. AMC’s motion doesn’t mention that any agreement it had with Newman “unambiguously excludes Plaintiff’s ability to seek equitable relief before this Court from the agreement itself,” it said. The court should deny AMC’s motion as her claim is “unrelated to her role as an employee,” or, in the alternative, sever Newman’s claims from her claims for damages and allow her to seek equitable relief on behalf of all others similarly situated before the court, it said. The U.S. Judicial Panel on Multidistrict Litigation added Newman’s case as the single tagalong action in conditional transfer order 20 last month (see 2312010048) in In Re: MoveIt Customer Data Security Breach Litigation, transferring it to the U.S. District Court for Massachusetts in Boston. AMC's motion to compel arbitration should be denied, said the response.