US Appeals Court Lowers Burden of Proof for Data Breach Lawsuits
The 4th Circuit Court has ruled that publishing data on the dark web can be considered damaging, potentially increasing the risk of lawsuits for breached companies.
An October decision by the 4th US Circuit Court of Appeals in Virginia has altered the risk calculus of data breaches, making it easier for litigants to sue breached companies in certain situations.
The case involved an insurance company data breach, resulting in the leakage of driver's license information of nearly 3 million customers.
Until this decision, most courts had ruled that having certain types of data stolen alone is not sufficient to prove damages.
Previously, plaintiffs had to provide proof of actual damage or evidence of actual fraud to successfully sue. This appellate decision may raise the stakes for breached companies and increase their exposure to lawsuits.
Author's summary: Court ruling eases data breach lawsuit requirements.
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