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 damaging, potentially increasing extortion stakes and 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, making it easier for litigants to sue breached companies in certain situations.
The case involved an insurance company data breach, resulting in the leak of driver's license information for nearly 3 million customers.
- Previously, courts ruled that having data stolen alone was not sufficient to prove damages.
- Plaintiffs had to provide proof of actual damage or evidence of actual fraud.
The decision could raise extortion stakes, rewrite CISOs’ risk calculus, and increase breached companies’ lawsuit exposure.
Author's summary: Court ruling eases lawsuit burden for data breach cases.