Fourth Circuit grants stay pending appeal in federal privacy case involving unions and individuals

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On April 7, the U.S. Court of Appeals for the Fourth Circuit entered an order staying a district court’s preliminary injunction pending appeal, and denied a request for an initial hearing en banc. The plaintiffs, constituting several unions and individuals, sued the Treasury, Office of Personnel Management, and Department of Education alleging violations of the Privacy Act over DOGE’s alleged unauthorized access to plaintiffs’ personal information. The district court had granted plaintiffs’ motion for a preliminary injunction. In granting a stay, the 4th Circuit identified several challenges plaintiffs would face on the merits of their case — establishing standing, final agency action, an APA cause of action, and a Privacy Action violation. Reviewing these challenges, the 4th Circuit found that the plaintiffs were not likely to succeed on at least one of these issues. In dissent, one judge noted the sensitivity of the information at-issue, highlighting the potential harm to individuals’ privacy and the importance of protecting sensitive personal information. In addition, several judges dissented from the denial of an initial hearing en banc.

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