Recent Marriott Data Breach Class Action Decision Underscores The Importance Of Class Action Waivers

Data breaches are an all-too-familiar issue, affecting businesses of all sizes and across all industries. Beyond dealing with the operational and reputational impacts and other resulting fallouts of a data breach, businesses also face enhanced class action litigation risk.

A recent high-profile case serves as a valuable reminder that companies should consider reliance upon a well-established mechanism of mitigating class action litigation risk. In In re Marriott International, Inc., Consumer Data Security Breach Litig., 78 F.4th 677 (4th Cir. 2023), the Fourth Circuit Court of Appeals reversed the district court's certification order in a data breach class action dispute due to the effect of a class action waiver signed by all putative class members. The Marriott decision demonstrates how class action waivers can be utilized as a core strategy for mitigating heightened data breach litigation risks.