What’s The Cost Of A Data Breach Lawsuit? More Than 8 Million Dollars

By | January 21, 2024

It is possible to save money on IT Recycling services, but it could cost you more in legal fees if there is a data breach.

Devices that are not properly disposed of can lead to data theft. Even if we have wiped the computer or restored factory settings, data theft can still occur.

Data recovery tools are improving at the same pace as other technologies. If you don’t know how to retrieve your data, there is a way. Are you willing to expose your company to this kind of risk?

A company like eCycle Florida will handle your IT recycling service so you don’t have to worry about becoming a statistic in the world of data breach lawsuits.

Data Breach Lawsuits: Landmark Cases

Data breach lawsuits are a very popular field. They have been brought to court by many companies around the globe.

Big Bucks for British Airways

British Airways was the victim of a data breach at its company level in 2018, which saw almost 400,000 customer financial and personal information leaked.

The plaintiff filed the lawsuit in 2018 but customers had until March 2021 to file their claims. This is two more years of stress and misery for a well-known company. Only 16,000 people filed their claims. Each claimant could receive a $2724 payout

Consider this question: What would you think if this were your company?

HyVee is expensive

In 2018, there was also a data breach at HyVee, a chain of grocery stores/gas stations. Nearly 40 Iowa cities were affected by the breach, which resulted in customers being able to obtain their names, credit card numbers and verification codes as well as expiration dates.

In the ensuing case, several Hyvee customers filed data breach lawsuits against Hyvee starting in October 2019 and continuing through November 2019. The company attempted to dismiss the case, but the judge rejected that and proposed a $225 settlement per victim.

Customers must meet the following requirements to be eligible for settlement money:

  • For $20 an hour, you can spend up to three hours dealing with data breaches
  • A $20 payment per card that reimburse fraudulent charges
  • Bank fees not reimbursed
  • Telephone, data and internet charges
  • Bank and credit card companies refused to reimburse charges
  • Payday loans interest
  • Reimbursement of the cost for credit reports, credit monitoring and identity theft protection.

Hy-Vee would also have to pay $727,000 in attorney fees for plaintiffs and $12,000 for expenses.

Although there are no claims regarding how many people have filed for reimbursements, $225 can quickly add up, especially if it is spread across 40 cities.

Your company will always be better off if there is no money lost. You can avoid these types of cases by ensuring that your IT recycling is done correctly. These cases show that data breach lawsuits can go on for years, and continue to cost you money.

Lawsuits for Identity Theft Caused By Improperly Disposed Devices

They end up in landfills or dumps when we throw them away. They can be easily taken by data manipulators, and they often leach toxic chemicals into groundwater.

Your IT devices can be stolen by simply sitting in the garbage. The right thief could gain access to your computer, phone, tablet, card reader or any other device.

Data stolen could include confidential financial records of the company, employee medical information, identity information, social security numbers, and bank numbers. Employees who are affected by a data breach can file lawsuits against the company.

Kroger, a popular east coast grocery chain, is currently in a similar situation as of April 2021. Kroger’s lack of protection for employee data led to a data breach that exposed millions of employees’ birthdates and social security numbers.

The employees who were affected by this negligence are entitled to at least $300 in damages

You are entrusting your employees with their data. It is important to respect that trust. Avoid identity theft by properly recycling your devices with eCycle Florida.

Avoid a Data Breach Lawsuit and Recycle Your IT Devices

Each device is taken apart by our experts. No hacker can access your company’s sensitive data with our data destruction services . We follow a strict process to properly destroy all data and to recycle as much material as possible.

We offer Certificates of Destruction to seal the deal. These certificates confirm that data devices have been handled according to NIST 800.88 standards. We do the job right so that you don’t have to worry about your data getting lost or leaking.

This post was written by Steven Elia Co-Founder and Recycling Director at eCycle Florida. eCycle Florida is a R2 Certified electronics recycling company in the state of Florida. Our processes and procedures are dedicated to the proper destruction and recycling of your electronics. eCycle Florida is your go-to for Orlando electronics recycling.