What Goes Around Comes Around: The Resurgence of Data Breach Class Actions

Data breach class actions are again on the rise, with a recent report by Lex Machina confirming what many cybersecurity practitioners have seen first-hand over the last two years. The findings also reaffirm longstanding best practices: preparation mitigates cost and improves defenses when victim-organizations are required to defend a class action or regulatory proceeding.

The report shows that 2,040 data breach class actions were filed in 2023—nearly three times the number filed in 2022. The defendants in these matters spanned a range of industries, with financial services and health care companies among the most frequently targeted. These cases also often involve multi-district litigation (MDL), such as the MDL in federal court in Boston that stems from the 2023 cyberattack involving Progress Software’s MOVEit file-transfer software.

The report goes on to list the federal districts…