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Hiscox Insurance Loses Bid to Hold Law Firm Responsible for Data Breach

April 14, 2022

Bloomberg reported on April 1 that Hiscox Insurance Co. had lost its lawsuit against Warden Grier LLP alleging that the law firm’s handling of a data breach exposed the insurer’s confidential data, after a federal jury in Missouri issued a verdict in favor of the law firm.

Hiscox sued in 2018 after Warden Grier purportedly experienced a hack that put personal information of its clients at risk. Hiscox said the hackers accessed the computer system containing “all of the sensitive information.” The insurer further alleged that the law firm paid the hacker a ransom to keep the compromised information secure but didn’t notify the insurer about the breach.

U.S. District Judge Nanette K. Laughrey of the Western District of Missouri denied Warden Grier’s motion to dismiss most claims in July 2020.

The three-day trial began March 28, ending with the jury’s verdict in favor of Warden Grier.

The suit included claims for breaches of contract, implied contract, and fiduciary duty, as well as for professional negligence.

This is the first suit of its kind that I’ve seen. To other law firms which have experienced a data breach, I suspect this was very fact-specific. I wouldn’t take great comfort in it – and of course there are ethical duties as well as legal ones.

Sharon D. Nelson, Esq., President, Sensei Enterprises, Inc.
3975 University Drive, Suite 225, Fairfax, VA 22030
Email:   Phone: 703-359-0700
Digital Forensics/Cybersecurity/Information Technology
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