Index Fund Advisors
Data Breach

1. Get confirmation of the data breach and collect as many details about the incident as possible. 
2. Contact an attorney to investigate the complex litigation involved in security breach lawsuits. 
3. Try to find out what information was exposed and protect yourself as much as possible. 
4. Talk to an attorney before accepting any settlement direct from a company. 
5. Monitor your accounts and personal information closely. 

Yes, in most cases. However, each case is different, but some recent lawsuits have proven to be quite valuable. In one data breach suit, Ohio Attorney General and attorneys general in other states obtained a $17.5 million settlement against The Home Depot due to a data breach in 2014. The settlement resolves a multistate data breach which exposed the payment card information of approximately 40 million Home Depot consumers.

The Home Depot data breach made vulnerable the company’s self-checkout point-of-sale system. In addition to the $17.5 million settlement, The Home Depot has agreed to improve network security and maintain data security practices in order to strengthen its data security program and protect the personal information of consumers.

Under current privacy law the firm or organization that is storing user data are responsible for data breaches and will pay any fines or damages that are the result of legal action. The actual data holder—an organization that provides cloud storage—is not usually legally implicated or held responsible in litigation. 

The majority of data breach incidents are accidental, and not actually hacking events. Outside threats do pose personal data risks for consumers, though the bigger risk is the internal security and cloud-based data network. Some common ways data can be compromised include:

• Exposing data in code banks
• Leaking data from misconfigured data buckets
• Expired security certificates
• Storing data with unsecured third party vendors
• Relaxed email security standards

Privacy laws are meant to protect patients’ personal health data, and when institutions fail to protect personal data they may be sued for damages. In recent years much health data has been leaked and stolen, causing significant damages to plaintiffs who have have taken legal action. 

In a recent case the American Medical Collection Agency (AMCA) settled with nearly 21 million people in 40 states and Washington D.C. concerning a data breach that may have exposed their personal information. The breach, which occurred in 2018, lasted nearly a year until official notice of the intrusion.

An unauthorized user gained access to the AMCA internal data system and collected the personal information, including Social Security numbers, financial information, and personal health information, such as medical tests and diagnostic codes.

Quest Diagnostics was alerted that the hack exposed the personal medical data of 11.9 million of its patients. LabCorp had 7.7 million patients exposed. A number of class action lawsuits were filed throughout the country, alleging negligence, breach of contract, and a variety privacy violations concerning data security.

A Class Action is a lawsuit brought by an individual on behalf of all other similarly situated individuals. Rule 23 of the Federal and State Rules of Civil Procedure allows for Class Action lawsuits to resolve disputes in an efficient format.

Class Actions are typically filed when the amount of money in dispute for a single plaintiff would not justify litigating the case, but where the amount of damages of the entire class of Plaintiffs would justify the cost of litigation. Without class actions, large corporate defendants would be able to cause small amounts of harm over a large group of individuals without any risk of monetary penalty.

In order for a case to be certified as a Class Action, the Court must determine that the case is appropriate for class action treatment under Rule 23. There are different elements depending on whether the case is seeking monetary or injunctive relief. In general, the Court must find the following elements are satisfied:

• Numerosity: The proposed class must be so numerous that simply joining the individual plaintiffs would be impractical. Generally, the class size should exceed 100 individuals.
• Common Questions of Law or Fact: The facts and/or legal questions in the dispute must be common to all class members. This does not mean all facts or issues must be identical, but the primary facts and law that will determine the issue in dispute must be common among all class members.
• Typicality: The named Plaintiff in the case must have the same facts and legal issues as the class they are proposing to represent. If the Plaintiff’s individual case involves issues of fact or law unique to that Plaintiff and are irrelevant to the ultimate issue, class certification may be denied by the Court.
• Plaintiff/Counsel Adequately Represents the Class: The Court must find that the Plaintiff and Plaintiff’s Counsel are competent and will protect the class’ interests.
• Predominance: Common questions of fact predominate over individual facts.
• Superiority: The Class Action is a more efficient and fair means of resolving the dispute. The Court will look at the following factors when making this determination: (1) Class Member interest in maintaining a separate action; (2) the extent of any litigation already begun by other class members; (3) desirability or undesirability of litigating the case in a particular Court ; (4) difficulties in managing the class.