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Evolution of the Standing Requirement In Data Breach Class Actions
As the digital age progresses, the risks associated with society's overall dependence on technology increase exponentially. Following the COVID-19 pandemic, millions worked remotely, relying on digital data and cloud computing — creating a new wave of digital workforce mobility. Consequently, due to the proliferation of consumer information online, cybercrimes increased dramatically, with data breaches targeting organizations and companies in an attempt to obtain and reveal sensitive or protected information of clients and employees.
Disputes related to the protection, or lack thereof, of consumer and employee information have become widespread. Many of these disputes are a result of data breaches. Data breaches allow hackers to obtain personal private data that they can then misuse in a number of ways. Thus, individuals whose information has been compromised seek ways to hold the entities responsible for safeguarding such information accountable. This has led to an increase in class action lawsuits related to cyberattacks in recent years. In 2021 alone, 36 major data breach class actions were filed. Employees were one-third of the overall plaintiffs.
As the landscape of cybersecurity and data privacy continues to evolve, so do the requirements needed to establish standing in regard to the type of harm suffered as a result of a data breach. Moreover, there has been a shift in the requirements needed to hold an organization legally and financially responsible for data stolen during a data breach.
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