Cybersecurity Investigations & Litigation

Overview

Cybersecurity incidents, including data breaches, occur on a daily basis. Organizations responding to these events must consider the risk that litigation and/or regulatory action will follow. Indeed, litigation and regulatory action following data breaches are increasing exponentially, creating a major risk for all compromised entities. Litigation is no longer a remote possibility, rather it is a probability.

Consumers, patients, employees, and/or other individuals whose information is impacted by a data breach now often become plaintiffs in single-plaintiff and class action litigation involving a myriad of federal and state laws, including the Health Insurance Portability and Accountability Act (HIPAA), the Telephone Consumer Protection Act (TCPA), the Fair Credit Reporting Act (FCRA), and state laws such as the California Consumer Privacy Act (CCPA), the California Privacy Rights Act (CPRA), and the Illinois Biometric Information Protection Act (BIPA), among others. In the wake of a data breach, plaintiffs’ counsel race to the courthouse in an effort to be the first to file associated claims. Compromised entities need highly skilled litigators who understand complex technology to defend against these claims.

Companies can also pursue litigation against parties whose actions contribute to a data breach by filing a variety of claims including, for example, negligence, breach of contract, theft of intellectual property, misappropriation of trade secrets, and/or other claims implicating errors and omissions or criminal misconduct. Companies can, with the assistance of best-in class litigators, ultimately seek to recover substantial losses from third parties whose actions contribute to data breaches.

Compromised entities must also contend with investigations from federal and state regulatory agencies following data breaches. These investigations can drag on for months, or even years, and involve costly and time-consuming requests for documents and information. They can also result in difficult negotiations with regulators and the potential for significant fines and penalties.

Constangy attorneys have extensive experience representing clients in the many types of complex litigation and regulatory actions arising from data breach-related matters. Our litigation team will defend clients vigorously – in the courts and in proceedings before various oversight bodies and enforcement authorities, when appropriate. But, as valued business partners, we also recognize that an early resolution is often more desirable, and we have a proven track record of evaluating and using alternative methods of dispute resolution to achieve those favored results.

Class Action Representation

Large, complex class actions can quickly become “bet-the-company” scenarios and are one of the greatest threats facing organizations today. While the costs alone can be staggering, high profile cases can also have a significant impact on an organization’s reputation, morale, and operations. Constangy offers a team of experienced, highly skilled litigators who understand the potential legal and business ramifications resulting from a data breach class action and can develop and execute an effective defense strategy to protect our clients’ interests. Constangy's Class Action practice group brings to the defense of complex, multi-plaintiff lawsuits an elite group of strategists with an unparalleled depth of experience and particular strengths in:

Containing the impact of high-profile, multi-plaintiff litigation
Identifying whether early mediation and/or settlement is an appropriate option
Identifying whether early motions to dismiss may be dispositive or facilitate early resolution and substantially reduce the cost of discovery and litigation
Designing and implementing creative defense strategies to defeat the class aspects of the case
Exploring suitable means for resolving complex cases on terms acceptable to our clients through the use of mediation and other forms of alternative dispute resolution; and
Working with insurance carriers to keep them regularly updated on status of matter, and ensure prior approval for litigation expenses and settlement offers
Incorporating key defense experts (forensic experts, statisticians, etc.) into the defense plan
Structuring litigation with an eye toward maximizing success on appeal where issues of first impression are critical and the client’s long-term strategic interests make seeking to establish or change controlling law a cost-effective tactic
Planning and operating within a litigation budget

Skilled Class Action Defense
We defend clients in high-stakes data breach class actions.
Regulatory Investigation Support
Our attorneys guide organizations through complex, disruptive regulatory inquiries.
Litigation Against Bad Actors
We represent organizations bringing claims against negligent or malicious third parties whose actions caused or contributed to a data breach.
Efficient & Strategic Resolution
From early dismissals to mediation, we identify and leverage cost-effective strategies to achieve favorable outcomes for clients.