US Appeals Court Lowers Burden of Proof for Data Breach Lawsuits
The 4th Circuit Court has ruled that publishing data on the dark web alone may be damaging, potentially raising extortion stakes and increasing lawsuit exposure for breached companies.
An October decision by the 4th US Circuit Court of Appeals in Virginia altered the risk calculus of data breaches, easing the ability of litigants to successfully sue breached companies in limited situations.
The case involved an insurance company data breach, resulting in the leakage of driver's license information of almost 3 million customers.
Previously, most courts had ruled that having certain types of data stolen alone was not sufficient to prove damages, requiring plaintiffs to provide proof of actual damage or evidence of actual fraud.
Dark web data publication alone may be damaging
Author's summary: Court ruling eases data breach lawsuit process.
- 4th Circuit Court decision alters risk calculus of data breaches
- Publishing data on the dark web may be considered damaging
- Breached companies may face increased lawsuit exposure
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