Record class action settlements in data breach lawsuits are on the rise. As hackers get more sophisticated, more industries are affected. Healthcare, government, banking, and securities are the most vulnerable to malicious action, but any industry that uses the Internet for communication and file-sharing is at risk.
The risk to banks, healthcare providers, and local governments is substantial, but when a mass data breach happens, the individual consumers suffer most. A hacked bank, for example, may have ample reserves to recover, but the people whose life savings were stolen may not have similar means. The institution is responsible for maintaining the safety and security of its customers’ data. Institutions that fail to take the proper steps to do so should rightfully be named as defendants in data breach class action lawsuits.
If a data hack has compromised your data, our data breach lawyers can help you evaluate your options, including initiating or joining a class.
What is a class action lawsuit?
A class action lawsuit is a civil action in which multiple individuals file a lawsuit against a common defendant who caused them similar harm. The plaintiffs collectively sue the defendant, pooling their resources to take on a powerful opponent.
Class actions can be a more efficient way of settling civil disputes. In a class action, the lead plaintiff represents the other class members. While all plaintiffs benefit from any settlement or jury award, the lead plaintiff is responsible for directing the suit, including deciding whether to settle or go to trial.
Who is eligible to participate in a class action?
Members of a class action group share a commonality; they were all affected or harmed similarly by the defendant’s negligence. To qualify, a prospective class member must demonstrate that they had an established relationship with the defendant and that the defendant’s actions (or inaction) caused the same damages as the lead plaintiff’s.
In the context of data breach class actions, members of a class may all be the customers of a bank or patients of the same healthcare provider whose database was breached. The customers or patients each had sensitive, personal information leaked or compromised and suffered damages as a result.
Recent developments in data breach class action lawsuits
Consumers recently filed class actions against a number of prominent, multi-national, and national corporations, each suit citing that the company filed to properly safeguard the plaintiffs’ secure, private information during the data breach.
Recent class actions (a total of nine) filed against AT&T cited a failure to safeguard the information of 70 million customers. The plaintiffs claim that the company failed to implement adequate security measures to prevent data breaches. AT&T had the contract-created responsibility, as do similar communications companies, to keep their customers’ personal information secure from unauthorized access.
Another class action was recently filed against Change Healthcare for a data breach that put thousands of patients at risk of identity theft. The private information contained in Change Healthcare’s files is now in the hands of data thieves.
In 2023, GardaWorld suffered a data breach caused by insufficient cybersecurity features. Nearly 40,000 individuals lost sensitive, personal information maintained on GardaWorld’s computer systems.
Benefits of data breach class action lawsuits
Class actions help people who would otherwise be unable to file a suit secure fair compensation for their damages and access high-quality legal representation. Class action defendants have tremendous resources of their own; the collaborative nature of a class action levels the field.
If you have suffered losses due to a data security breach, the attorneys at Mason LLP can advise you of your eligibility to join a class action. Contact us at (202) 429-2290 today.