US Companies Fork Over $155M in Data Breach Blunders: A Class Action Comedy of Errors
US companies shelled out $155m in class action settlements after data breaches, with inadequate security measures leading to 50% of lawsuits. Panaseer finds that while breaches aren’t always due to negligence, courts aren’t amused by lax data care. Pro tip: showing due diligence in cybersecurity can keep your wallet happy.
Hot Take:
Well, it seems like US companies are suffering from a serious case of “empty wallet syndrome” thanks to data breaches. With a whopping $155 million in class-action payouts over just six months, it’s clear that cybersecurity neglect is a costly affair. If companies weren’t already paying attention to their digital fortresses, they might want to start before they need to set up a GoFundMe to cover their legal settlements.
Key Points:
– US companies paid $155 million in class-action settlements over data breaches in six months.
– 43 lawsuits filed, 73 settlements reached, with an average settlement of $3 million.
– Inadequate security measures were the culprit in 50% of filings and 97% of settlements.
– States with strict privacy laws saw more activity: California, Florida, Illinois, New Jersey.
– Sectors hit hardest were healthcare (32.7%), finance (13.2%), and retail (5.3%).