Data Breach Securities Class Actions: Record Settlements and Investor Claims on the Rise
Data Breach Securities Class Actions: Record Settlements and Investor Claims on the Rise Data breach related securities class action filings are on the rise. These lawsuits are based on allegations that companies misrepresented or misled investors about cybersecurity events, such as data breaches or security vulnerabilities, causing stock prices to fall when the truth is […]
Posted by David Malmstrom, Broadridge, on Wednesday, August 21, 2024
Editor's Note:
David Malmstrom is a Manager at Broadridge. This post is based on his Broadridge memorandum.
Data Breach Securities Class Actions: Record Settlements and Investor Claims on the Rise
Data breach related securities class action filings are on the rise.[1] These lawsuits are based on allegations that companies misrepresented or misled investors about cybersecurity events, such as data breaches or security vulnerabilities, causing stock prices to fall when the truth is revealed. Data breaches have increased steadily since 2020[2] and this surge in breaches and cybersecurity incidents has led to more shareholders filing securities class action claims. This year we have witnessed significant settlements, including three of the top ten largest data breach related securities class action settlements, totaling $560 million.
