Data Breach Class Actions Surge: Over 2,000 Cases Filed in 2023
Womble Bond Dickinson
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Contributed by: Drex DeFord
Summary
In 2023, the number of data breach class action lawsuits exceeded 2,000, a significant increase from the previous year, particularly in California, which leads in filings due to heightened regulatory scrutiny. High-profile settlements, like Marriott's $52 million penalty, reveal the financial risks for companies following data breaches, emphasizing the need for effective breach prevention strategies and robust defenses against class actions. Allegations often center on inadequate cybersecurity measures or failure to inform consumers, with common claims involving negligence and invasion of privacy. Targeted sectors include credit rating agencies, financial institutions, and healthcare providers, which are subject to strict regulations. Additionally, some states, such as Tennessee, are implementing laws with higher liability standards, indicating a growing emphasis on cybersecurity accountability.
