As cyberattacks grow more sophisticated and widespread, businesses are facing unprecedented pressure to secure employee and customer information. But when a company becomes the victim of a data breach, the fallout often extends beyond financial loss and reputational damage. Increasingly, employees—both current and former—are turning to the courts, arguing that their employers failed to protect their personal data.
This raises an important question: Can employees sue a company that itself was the victim of a cyberattack?
The answer is yes—and it’s becoming more common.
Why Employees Are Suing Their Employers After Data Breaches
i) Employees entrust their employers with a substantial amount of sensitive information, including:
ii) Social Security numbers
iii) Home addresses and birthdates
iV) Direct-deposit banking details
V) Medical and insurance records
Vi) Tax forms and employment history
If this data is exposed during a cyberattack and later misused, employees may face identity theft, financial fraud, and long-term damage to their credit history. When they feel the employer failed to use reasonable security measures, lawsuits tend to follow.
On What Legal Grounds Can Employees Sue?
Legal claims may vary by region, but most employee data breach lawsuits rely on one or more of the following arguments:
- Negligence- Employees may argue that the company failed to implement industry-standard cybersecurity protections.
Other Examples include: Outdated software, Lac
Source: https://www.cybersecurity-insiders.com/can-employees-sue-victimized-companies-over-data-breach/
ACME IT Corp cybersecurity rating report: https://www.rankiteo.com/company/acmeitcorp
"id": "ACM1765180975",
"linkid": "acmeitcorp",
"type": "Breach",
"date": "12/2025",
"severity": "85",
"impact": "3",
"explanation": "Attack with significant impact with internal employee data leaks"{'affected_entities': [{'customers_affected': None,
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'data_breach': {'data_encryption': None,
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'personally_identifiable_information': 'Yes',
'sensitivity_of_data': 'High',
'type_of_data_compromised': ['Social Security '
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'description': 'Employees are suing companies after data '
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'impact': {'brand_reputation_impact': 'Reputational damage',
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'type': 'Data Breach',
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