Katie Szpyrka, a LinkedIn user from Illinois, filed the lawsuit. She claims LinkedIn deceived its more than 160 million members by having a security policy "in clear contradiction of accepted industry standards for database security." Szpyrka is seeking class-action status for the suit.
LinkedIn spokeswoman Erin O'Harra told Reuters that "no member account has been breached as a result of the incident, and we have no reason to believe that any LinkedIn member has been injured," something that Szpyrka's lawyers would have to prove for their suit to be successful.
A Russian hacker posted the cache of LinkedIn passwords -- albeit stripped of their associated usernames -- online in early June to prove he cracked a vulnerability on the site. It was then revealed that LinkedIn used SHA-1 cryptographic hash-based encryption for its passwords, a method considered somewhat safe but not without flaws.
LinkedIn quickly confirmed and apologized for the breach while millions of its members scrambled to change their passwords.
Reports that LinkedIn's iOS app violated users' privacy surfaced earlier this month as well.
Zappos.com, the popular online shoe retailer, is facing a similar case in a California court after hackers stole customers' data in January.
Do you think LinkedIn will be able to fight off the lawsuit? Let us know your thoughts in the comments.