Data and Business Litigation

By on June 27, 2019

Executive Summary of an article written by
Sarah F. Hutchins and Alli Davidson, Parker Poe

Data can provide competitive advantages, help streamline business functions, serve as a key resource to document processes and prove positions in legal disputes. On the other hand, data exposure is becoming a frequent source of civil lawsuits as companies face claims of negligence, breach of contract or other legal causes of action after a breach.

There are practical steps that companies can take before a breach or a lawsuit to better protect their intellectual property and put themselves in a stronger position when the need for litigation arises.

Federal attempts at data security standards have yet to coalesce, but there are federal regulations impacting certain industries or types of information. U.S.-based companies that store and use Europeans’ personal data are subject to the GDPR. Also, every state in this country has its own data breach and/or protection laws. Businesses need to review how they grant access to data.

Only give employees access to information and the ability to do things with technology that they need to do their job.

Regular self-audits of data practices are fundamental, as is awareness of how data standards continue to evolve through legislation and litigation. It is imperative to track federal and state statutes, as well as applicable case law, on data issues impacting your industry. Each court ruling is a piece of the puzzle that can help businesses determine their overall risk profile and update their practices where necessary.

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