Multibillion-dollar insurance corporation sued for data breach

photo-1555374018-13a8994ab246Insurance giant First American Financial faces a multimillion-dollar lawsuit, claiming the company “left more than 885 million sensitive documents dating as far back as 2003 exposed online,” Forbes.com reported on May 28.

“Now the company is facing a class action lawsuit for its apparent negligence. Gibbs Law Group LLP announced today that it is bringing the first nationwide class action lawsuit against the multibillion-dollar corporation,” the article reported.

The lawsuit was filed with the U.S. District Court for the Central District of California by David Gritz, a house flipper from Pennsylvania.

“First American was the title insurer for at least 11 of his housing transactions, according to the lawsuit,” Forbes.com reported. “The complaint suggests the members of the class affected by First American’s data exposure could be in the millions, and the lawsuit is seeking over $5 million.”

Yahoo data-breach settlement filed for $117.5 million

YAHOO_headquartersA class action settlement for $117.5 million has been filed following data breaches affecting billions of Yahoo accounts.

The Recorder at law.com reports on the $117.5 million settlement, which was filed in the U.S. District Court for the Northern District of California after a federal judge rejected an earlier preliminary approval.

“The settlement, filed Tuesday with the U.S. District Court for the Northern District of California, includes a single fund from which $55 million would be available for out-of-pocket costs and $24 million in identity theft protection for class members (or $100 payments to those who already have credit monitoring),” The Recorder reported on April 9. “It also includes $30 million in attorney fees and $2.5 million in legal costs, a slight reduction from the original fee request.”

Data breaches in 2013 and 2014 accounted for more than 3 billion accounts that were hacked, according to Yahoo. Defendants include Altaba Inc., the division of Verizon formerly known as Yahoo.

In California, new privacy, data protection rules could fuel lawsuits

shutterstock_329735990-2California’s new privacy law could spur a rash of class action lawsuits against companies, officials warn.

The Recorder at law.com reports that the regulations, due to go into effect Jan. 1, 2020, “will bear more than a passing resemblance to the European Union’s General Data Protection Regulation, empowering Californians with more control over the way their data is collected, shared or viewed by companies on a daily basis.”

Reece Hirsch, a partner at Morgan, Lewis & Bockius, says the privacy rights outlined in the California Consumer Privacy Act will empower the individual and possibly prompt litigation.

“A provision of the CCPA creates statutory damages for security breaches, and as a result Hirsch expects to witness a spike in California security breach class action suits,” the site reports. “Lawyers may want to consider incorporating a review of a client’s incident response plan into their CCPA prep work, he says.”