Safety From Hackers—and Trial Lawyers

Feb 26

A simple legislative fix would shield cybersecurity innovators from costly nuisance lawsuits.

By Brian E. Finch

Companies that are victims of cyberattacks increasingly find themselves also targeted by plaintiffs’ lawyers, who bring lawsuits alleging their security measures were negligent. Anthem Inc. last year agreed to pay $115 million to customers affected by an attack believed to have been perpetrated by a foreign government. Computer chip manufacturers have faced dozens of lawsuits based on the mere prospect that consumers will suffer damage from hacking.

Such lawsuits are more than a costly nuisance. They paralyze security innovation and expansion. Fortunately Sen. Steve Daines of Montana has introduced a bill that can stem this tide by clarifying that an existing federal liability-management law applies specifically to cyberattacks.

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