In recent years, class actions arising from data breaches have surged dramatically, with over 2000 cases filed in 2023—more than tripling the 2022 filings. This indicates a growing concern over data security and accountability.
Companies, particularly in the finance and healthcare sectors, face intense scrutiny and potential financial repercussions for data breaches. For instance, a recent study notes that financial companies experienced stock drops of up to 17% following breach announcements.
States are taking legislative action to address this trend. Tennessee's new statute raises the liability standard for data breach class actions, aimed at protecting key industries by requiring proof of willful misconduct or gross negligence.
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