Data Breach Class Actions

Data security breaches are becoming more common every year. When a company fails to properly protect data under its control and hackers or unauthorized individuals gain access to that information, those who have been affected may have the option of banding together and filing a class action lawsuit against the company responsible for the data security breach.

Research indicates that malicious outsiders cause the largest percentage of data security breaches and account for the majority of all compromised data. Furthermore, identity theft breaches continue to be the leading type of data security breach. Although most types of businesses can be victims of data breaches, the industries most affected by data breaches include healthcare, retail, social media, government, and professional services.

Data breaches are a growing concern for individuals, as they can result in a range of serious consequences. From identity theft to financial loss, damage to reputation, emotional stress, and loss of privacy, the impact of a data breach can be far-reaching and long-lasting.

Identity theft is one of the most common outcomes of a data breach. When sensitive information such as Social Security numbers, credit card numbers, or other personal identification details are stolen, criminals can use them for their own gain. This can lead to financial losses for individuals, as well as the time-consuming and stressful process of restoring their credit and financial status.

Moreover, data breaches can result in direct financial losses for individuals, such as paying for credit monitoring services or fixing errors on their credit report. This can be a frustrating and expensive experience for those affected.

Additionally, data breaches can cause damage to an individual's reputation, particularly if sensitive information such as medical records or financial information is leaked. This can have far-reaching consequences, as it can impact an individual's personal and professional life.

The aftermath of a data breach can also be emotionally distressing for individuals. The fear of identity theft and the possibility of financial loss can cause significant stress and anxiety.

Finally, data breaches can result in a loss of privacy for individuals, as their sensitive information may be made public or used by unauthorized individuals. For those who value their privacy and prefer to keep their personal information confidential, this can be a significant and troubling outcome.

The benefit of a data breach class action lawsuit is that it allows individuals to take collective action against a company that has failed to adequately protect their sensitive information, resulting in improved compensation, increased accountability, access to legal representation, and improved privacy protection.

Remedies sought in data breach class actions generally include one or more of the following: (a) subscription to a credit monitoring service and/or identity theft insurance for some period of time (regularly 12-36 months); (b) reimbursement for out-of-pocket losses due to the data breach; (c) compensation for time spent responding to the data breach; and/or (d) court ordered enhancements to the defendant’s data security measures and/or data breach response protocols.