06 May 2016

Chicago law firm faces class-action over data security

Class action firm Edelson has filed a lawsuit against an unnamed Chicago firm for alleged data security breaches and claims there are more lawsuits to come.

A Chicago law firm is being sued Wasin Pummarin

A US law firm is bringing a privacy class action against a Chicago law firm over allegations of data security around client information. Edelson PC announced yesterday it has filed a federal class-action under seal that targets the Chicago-based regional law firm. It said the  case was filed under seal so that hackers would not be alerted whilst the problem was still outstanding but that a motion was filed to unseal the complaint now that the issue had been resolved. 

Investigation

In an interview with Big Business Law recently, class action lawyer Jay Edelson said that the firm was gearing up to bring malpractice class actions against law firms over the exposure of client information and claimed his firm had conducted a year long investigation which identified 15 law firms with inadequate cybersecurity . 

Law firms targeted by hackers

In the aftermath of the leaks from Panama law firm Mossack Fonseca, data security is a key risk for law firms. The Federal Bureau of Investigation has identified law firms as vulnerable to attacks and are investigating a number of incidents. New York law  firms  Cravath Swaine & Moore and Weil Gotshal were part of one attack last year.  In the Wall Street Journal, Cravath said of its breach, which is being investigated by federal agencies, that it involved a 'limited breach'of its systems and that the firm was 'not aware that any of the information that may have been accessed has been used improperly.' The firm said its client confidentiality was 'sacrosanct' and it was working with law enforcement agencies as well as outside consultants to assess its security. Law firms in the US last year formed an information-sharing group to share information on cybersecurity. Sources: Bloomberg; The Wall Street Journal; Law360

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