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The effect of data breaches on commercial litigation

On Behalf of | Mar 17, 2022 | Business Litigation

Data security is an old risk for countless professionals and companies in New York that hold customer information. They have different ways to comply with data security laws from installing software to creating disaster recovery plans. If they face lawsuits, they have the option to pursue business litigation to protect their commercial interests.

Increased incidences of data breaches

In 2020, the rates of identity thefts and data breaches have increased since 2019. Data security breaches have existed for as long as computers and technology have existed since the 1980s and ’90s. However, the public’s awareness of this problem increased in the early 2000s. Today, more Americans are aware of data breaches and concerned about their risks of identity theft.

Litigation over data breaches

More individuals and companies are taking additional steps to protect their data. They are initiating incident response plans to reduce the number of data security incidents. When their efforts fail, they have different forms of business litigation to consider.

If millions of people are affected by a single data breach, plaintiffs can file a class-action lawsuit and reach a collective settlement. A class-action suit receives more public exposure and is often more likely to win than a lawsuit involving a single plaintiff.

The significance of commercial litigation

Most businesses are required to maintain and secure complex databases of customer and employee information. They have to comply with various business laws that relate to data privacy and security. In addition, they have different legal options available to help them restore their data and punish the hackers or identity thieves that have system breaches.