In 2024, class action suits hit $42 billion and data privacy lawsuits are largely driving that number. But here’s the part no one’s telling you: lawsuits—not hackers—are what’s killing companies like yours. Think you’re safe because you have cyber insurance or passed your last compliance audit? Think again.
Class action litigation is now a standard part of every major data breach—and it's coming for businesses of every size. Here’s what’s driving this legal explosion:
- Negligence lawsuits are the new norm. If you store customer or employee data and suffer a breach, you can be sued for failing to prevent it—even if you didn’t cause it.
- Vendors aren’t the shield. They’re part of the risk. Even if a breach happens through a third-party vendor, your company can still be sued for failing to vet them.
- New legal battlegrounds: adtech, AI, and biometrics. You don’t need to be a tech company to get caught in the crossfire. If you use facial recognition, behavioral tracking, or targeted advertising—congratulations, you're part of a growing litigation wave.
In short: Cybersecurity isn’t just an IT issue. It’s a legal liability.
And here’s the kicker—if your MSP doesn’t have a documented, defensible compliance framework in place, you’re both going down. Ask your MSP if you have a documented risk acceptance plan, a breach response protocol, and vendor vetting procedures. If they can’t give you that, it’s time to escalate.
Worried about your legal exposure? We offer a free Cyber Liability Essentials consult to help you understand your current risk—and what to do about it.
