Learning From Data Breach Cases To Reduce Legal Risk

The average cost of a data breach is on the rise.

According to the 2022 ForgeRock Consumer Identity Breach Report, the average cost in 2021 of recovering from a data breach in the U.S. is $9.5 million — an increase of 16% from the previous year.

Lawsuits and regulatory fines are a significant factor contributing to the growing cost. This year, several notable class action settlements have been announced, including T-Mobile for over $350 million, the U.S. Office of Personnel Management for $63 million and the Ambry Genetics Corp. for over $12.25 million.

This article looks at the alleged security failures in recent data breach litigations and proposes steps companies may consider to help reduce the legal risk of a data breach.