Defeating Data Breach Class Actions

This presentation explores the surge in class action lawsuits related to data breaches, with over 2000 cases filed in 2023.  These cases  often allege inadequate cybersecurity, misleading security protocols, or delayed breach notifications. Key legal claims include negligence, breach of contract, and privacy violations.

A critical defense issue is standing, with courts inconsistently applying standards, especially concerning future identity theft risks. The Supreme Court's decision in Transunion v. Ramirez is pivotal here. Arbitration clauses in consumer contracts are also discussed as a potential defense strategy.

Substantive defenses focus on compliance with industry standards.   Early case assessment is vital for evaluating defenses and potential outcomes. Strategies like motions to dismiss, arbitration, and summary judgment are highlighted to resolve cases early. Class certification challenges are also addressed.

The presentation emphasizes the importance of robust cybersecurity measures to prevent breaches and reduce litigation risks. It concludes with examples of significant settlements and advises on prevention through technology investment, incident response planning, and regular security audits.

Questions: Kathleen Smits at charlotteAED@accglobal.com

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