Did You Know Your Business Could Be Sued The Day after a Data Breach?

Litigation and lawsuit stress concept as a lawyer or attorney metaphor and plaintiff anxiety symbol as a law scale damaging a human icon as an impact due to legal issues of the courts or being sued and investigated as a 3D illustration.No business owner wants a lawsuit filed against their company. Litigation costs alone can bankrupt your organization. Unfortunately, a recent court ruling has made it easier and faster for your company to be sued. Read on to find out the details and, most importantly, how to protect your business.


 Several weeks ago, the fast food chain, Sonic, acknowledged a breach affecting an unknown number of store payment systems. It was yet another incident in a recent stream of high-profile breaches that include Equifax and Yahoo. But what makes this incident different is the fact that the day after Sonic reported the breach, a class action lawsuit was filed against them.

How was this possible? In a landmark ruling, a civil action suit against a healthcare entity that fell victim to a database hack affecting 1.1 million people was allowed to proceed after the judge ruled that the theft of personal information, health care records or other confidential information, created a risk of identity theft, thereby causing harm to the victims. Previously, the suit had been thrown out because the victims had no proof that harm was caused until identity theft actually took place. This latest ruling establishes that harm is caused by the mere risk of identity theft, even if no theft or financial loss ever takes place.

Data Breach Impact on Your Business

We’re living in a new world now, where your business can be sued overnight in the wake of a data breach. Whether your network is hacked, a backup tape goes missing, or confidential paper documents are stolen, your business is immediately at risk. Without a proper prevention strategy, your business could suffer catastrophic losses and even be forced to close permanently.

What to Do

These recent events should serve as a wake-up call for your business. Seek the help of a records and information management provider who can provide a turnkey solution for helping protect sensitive documents and data. Areas to focus on include:

Look for a partner who also offers a data breach readiness and reporting service and can guide you on best practices for ensuring privacy law compliance, information security, and prompt incident response.

It may be impossible to completely prevent all data breaches, but as the old adage says, “An ounce of prevention is worth a pound of cure.”

DeVries Business Services proudly serves businesses in Spokane, Eastern Washington and Northern Idaho. To learn more about our information management and data privacy services, please call us at 866-433-4691 or complete the form on this page.

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