Scammers are becoming more sophisticated, impersonating internal communications from CEOs by using near-perfect email addresses or even bona-fide ones that have been compromised. Credit: dimadesigner/Adobe Stock;
Third-party liability claims
When everyone thinks of cyber, first-party ransomware claims spring to mind, but this year there has been a more significant rise in third-party liability claims driven by pixel and tracking software-related matters.
As more U.S. states pass laws against the collection of personally identifiable information, tracking software claims have evolved. This new trend follows other data privacy trends that also gained traction in 2023 such as the Illinois Biometric Information Privacy Act (BIPA). Due to several plaintiff-friendly rulings, there was an increase in the overall settlement value of these matters in addition to an increase in the number of filings.
The litigation of pixel and tracking software matters is still in the infancy stage. Notwithstanding, there have been some early benchmark settlements – for example, with Meta. The legislation gives individuals the right to private action with statutory damage with a resulting increase in class actions. Meta agreed to pay out $650 million to settle a lawsuit relating to data privacy claims in 2021, while Google paid out $100 million last year.
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