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Breach Study on Most Likely To Get Sued

PRIVACY LAW—U.S.

March 28, 2012

A study by Carnegie Mellon's Heinz College of Public Policy and Information Technology and Temple University's Beasley School of Law has found that breaches having occurred due to "unauthorized disclosure of disposal" of data are twice as likely to result in lawsuits as those that occur due to a hacking incident, reports Dark Reading. In "Empirical Analysis of Data Breach Litigation" the researchers say this suggests "plaintiffs respond more to the careless or negligent handling by a firm of their personal information than to the firm's inability to withstand a cyber-attack." The study looked at 200 federal data breaches and also found plaintiffs' financial loss and proof of harm to be a determining factor in whether companies settled suits.
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