Ride the Lightning

Data Breach Class Action Planned Against Elite Law Firms

April 5, 2016

Law360 reported (sub. req.) on March 31^st that privacy class action law firm Edelson PC is planning to file class action legal malpractice litigation against major law firms over the exposure of confidential information. Jay Edelson, the firm's founder, says the firm began investigating a class action against as-of-yet unnamed law firms over client data breaches nearly a year ago.

One interesting quote from Edelson in the article: "Firms are incapable of getting the 60-year-old rainmaking partner to not use public Wi-Fi to access client data on a computer that is not secure . . . they are just totally dropping the ball there." I can't verify whether that is accurate, but it shouldn't be happening at large law firms. Hopefully, technology and training together can prevent that problem . . . but maybe I'm wrong . . .

And another quote, mirroring my own views expressed in an earlier RTL post: "We've heard story after story from our friends on the defense side – it's a worst-kept secret that there are data breaches all the time at law firms, and there are a ton of state laws which require notification of data breaches, and the law firms seem to not care about those laws."

My spin is slightly different – I think the firms have weighed the risks and determined that the risk of non-compliance with state data breach laws (and why oh why isn't there a federal law?) is small – in Virginia, as an example, your risk is $150,000 per breach – chump change. The greater risk for law firms (I'm sure) is the horrifying thought of major clients beating a path to the exit door.

Edelson also that that as his firm plans a class action, he anticipates state attorneys general and even the Federal Trade Commission may be investigating law firm cybersecurity reporting practices.

Hat tip to Dave Ries.

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