The U.S. Court of Appeals for the Fifth Circuit has held, in Lone Star National Bank, N.A., et al., v. Heartland Payment Systems Inc., that banks that suffered economic losses as a result of a data breach may bring a negligence claim, at least under New Jersey’s tort law. In many states, the economic loss doctrine usually precludes negligence claims where the only loss alleged is economic rather than some personal injury or harm to property, absent some “special relationship” between the parties. Accordingly, many courts dealing with data breach cases have held that this doctrine bars plaintiffs’ negligence claims. The Fifth Circuit found that New Jersey’s version of the economic loss doctrine, at least, allows negligence cases even where the losses are purely economic, as long as one or more factors are present. This decision is especially significant for financial institutions that want to recover costs inflicted by data breaches of third-party processors with which the financial institutions have no contractual relationships.