Bloomberg Law
Oct. 9, 2019, 8:45 AM

California Privacy Law May Spur Data Breach Lawsuit Wave

Sara Merken
Sara Merken
Reporter

Companies doing business in California may face a heightened risk of litigation when the state’s new privacy law takes effect in January, litigation and privacy attorneys say.

The California Consumer Privacy Act clears the way for state residents to sue companies for data breaches involving certain information, if a company fails to maintain reasonable security. Californians can seek damages of between $100 and $750 per consumer per incident under the law. That may mean millions of dollars for some companies, attorneys said.

The new, limited CCPA private right of action and possibility of statutory damages increase companies’ potential exposure to ...

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