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Goldberg Kohn Litigation Principal David Morrison is quoted in the article, “Illinois Cases to Watch in 2026,” published in the Jan. 2, 2026, edition of Law360. In the "Answering Key BIPA Questions" section, he comments on the Seventh Circuit’s pending decision in a case that will help determine the scope of a financial institution exclusion under Illinois’ Biometric Privacy Act (BIPA). David frequently represents clients in actions brought under privacy laws, including BIPA.
BIPA is a comprehensive law regulating how private companies collect, use, store, and share Illinois residents' biometric data (like fingerprints, facial scans, iris scans, and voiceprints). It requires businesses to provide written notice, obtain written consent, and establish public data retention policies, allowing individuals to sue for violations, leading to significant damages for companies found non-compliant, making it a stringent biometric law in the United States.
The U.S. Court of Appeals for the Seventh Circuit is close to a resolution in an appeal exploring whether a trial court correctly decided that Charles Schwab's voiceprint authentication vendor should be excused from BIPA's requirements under a statutory exclusion for financial institutions subject to the federal Gramm-Leach-Bliley Act. The court heard argument on the issue in October.
"The magnitude of such a ruling could prompt the Seventh Circuit to seek guidance from Illinois' top court."
The Seventh Circuit's decision on this front will be significant "for the simple reason that there are very few exceptions or defenses to liability under BIPA," says David Morrison in the article.
Finding that the vendor was correctly afforded financial institution protection will constitute a recognition that "another group of corporate defendants may have an available defense to what is one of the strictest privacy laws" in the country, David said. However, the court would also likely draw some sort of line regarding which type of vendors fit within the exemption, he added.
Rejecting exempt status for the vendor would create "one of the first dents" to an otherwise complete defense against BIPA liability, David said. However, the magnitude of such a ruling could prompt the Seventh Circuit to seek guidance from either Illinois' top court or another case working its way through the state court channels for the state justices' review, he said.
The case is Norma Cisneros v. Nuance Communications Inc., case number 24-2982, in the U.S. Court of Appeals for the Seventh Circuit.
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