Proactive risk management protects against exposure from increasing regulation of privacy interests

Those that do business in California should take careful note of the flurry of recent state legislative activity

Data breach and privacy concerns are top of mind for companies no matter where they operate. However, those that do business in California should take careful note of the flurry of recent California legislative activity that increases regulation and potential corporate exposure in this arena.

For example, signature collection recently began in California for a state initiative that is intended to significantly lessen the largest hurdle faced by plaintiffs in privacy actions — demonstrating harm from the disclosure of “personal information.”  If the initiative passes, culpable harm will be presumed upon allegedly improper disclosure of broadly defined “personal information.”  To date, numerous privacy actions have been dismissed because the plaintiffs cannot establish injury/harm. Hence, multiple commentators have predicted that this initiative could create substantial increased exposure to class action privacy lawsuits for any entity that collects and maintains personal information.  

Contributing Author

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Linda D. Kornfeld

Linda D. Kornfeld is a partner with Kasowitz’s Insurance Recovery Litigation practice and managing partner of the firm’s Los Angeles office. With more than...

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Contributing Author

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Julia K. Holt

Julia K. Holt is an associate with Kasowitz’s Insurance Recovery Litigation practice in Los Angeles. She represents corporate insureds and reinsureds in complex insurance...

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