Analysis

Cyberattack Class Suits Have Unpredictable Insurance Impact

By Shawn Rice (June 30, 2021, 5:55 PM EDT) -- Companies crippled by cyberattacks often face hefty costs to manage the fallout, but subsequent class actions over compromised data can have particularly unpredictable financial impacts on these companies and their insurers, according to legal experts.

In June, four class actions — two in federal and two in state courts — accused Scripps Health, a hospital system that was hit with a data breach during a cyberattack, of negligently handling the personal and financial information of more than 147,000 patients, staff and physicians. San Diego's second largest health care provider is blamed for failing to protect network servers, according to court records....

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