In an era where digital information is paramount, data breaches are not just an occasional headline but a recurring threat with potentially devastating consequences for businesses and individuals.
At Mason LLP, our data breach attorneys specialize in navigating the complex landscape of data breach litigation. With our extensive experience in data protection law, we provide invaluable insights and robust defense strategies to protect your organization from the fallout of data breaches. Keep reading to learn more, then call (202) 429-2290 to schedule a free consultation.
Legal basis for data breach lawsuits
Yes, you can get sued for a data breach. When a data breach occurs, affected individuals and entities may pursue legal action against the responsible party. The grounds for such lawsuits often include negligence, breach of contract and violations of state and federal laws designed to protect personal information.
Federal statutes relevant to data breaches
Several federal statutes address the issue of data breaches and the legal responsibilities of businesses to protect personal information. Key among them are:
- Health Insurance Portability and Accountability Act (HIPAA) – This law mandates that healthcare providers and related entities implement safeguards to protect patient information. Failure to do so can result in legal action.
- Gramm-Leach-Bliley Act (GLBA) – This act requires financial institutions to explain their information-sharing practices and to safeguard sensitive data.
- Federal Trade Commission Act (FTCA) – The FTCA prohibits unfair or deceptive practices, including failing to implement adequate data security measures.
Potential grounds for data breach lawsuits
Negligence
Negligence is a common ground for lawsuits following a data breach. Plaintiffs may argue that the company failed to take reasonable steps to protect their personal information. To establish negligence, plaintiffs must demonstrate that:
- The company had a duty to protect the data.
- The company breached that duty.
- The breach directly caused harm to the plaintiffs.
Breach of contract
Customers or clients may sue for breach of contract if the company fails to uphold its promise to protect personal information as stipulated in privacy policies or service agreements.
Violation of state data breach laws
In addition to federal laws, many states have data breach notification laws. For instance, the California Consumer Privacy Act (CCPA) provides consumers with specific rights regarding their personal information and imposes strict data protection and breach notification requirements on businesses.
Biggest data breaches in US history (so far)
Equifax Data Breach (2017)
In 2017, Equifax, one of the largest credit reporting agencies in the United States, suffered a data breach that exposed the personal information of approximately 147 million people. The breach included names, Social Security numbers, birth dates, addresses and, in some cases, driver’s license numbers.
Equifax reached a settlement agreement with the Federal Trade Commission (FTC), the Consumer Financial Protection Bureau (CFPB), and 50 U.S. states and territories for up to $700 million. This included up to $425 million for individual compensation and credit monitoring, $175 million for states and territories and $100 million in civil penalties.
Yahoo Data Breach (2013-2014)
Yahoo experienced a series of data breaches between 2013 and 2014, which affected all 3 billion of its user accounts. The breaches compromised names, email addresses, telephone numbers, birth dates, hashed passwords and, in some cases, encrypted or unencrypted security questions and answers.
In 2018, Yahoo agreed to a $117.5 million settlement to resolve litigation related to the data breaches. The settlement included compensation for affected users and costs for security improvements and remediation efforts.
Target Data Breach (2013)
In 2013, Target experienced a data breach during the holiday shopping season. The breach affected approximately 41 million payment card accounts and the personal information of over 60 million customers. The breach involved names, credit and debit card numbers, expiration dates, and CVV codes.
Target agreed to pay $18.5 million in a multi-state settlement with 47 states and the District of Columbia. Additionally, Target faced various class action lawsuits and legal fees. The total costs associated with the breach, including compensation for affected customers, security improvements and other related expenses, are estimated to be over $200 million.
How Mason LLP can help
At Mason LLP, we understand the complexities of data breach litigation. Our experienced attorneys have a proven track record of successfully representing clients in breach lawsuits. We can help you understand your legal obligations, implement robust data protection measures and navigate the aftermath of a data breach.
Mitigating risks of data breach lawsuits
To reduce the risk of being sued for a data breach, businesses should:
- Implement comprehensive data security policies and procedures.
- Regularly update and test security measures.
- Train employees on data protection best practices.
- Promptly notify affected individuals and authorities in the event of a breach.
Minimize the damage of a data breach with Mason LLP
So, can you get sued for a data breach? Absolutely. The legal landscape surrounding data breaches is complex and constantly evolving. Businesses must proactively protect personal information to avoid a data breach lawsuit’s costly and damaging consequences. If you face a data breach or need to enhance security measures, contact Mason LLP for expert legal guidance and support.