Data Breach & Privacy Violation: Get Compensation for Stolen Data

Data breaches have become a fact of modern life, with over 3,150 data compromises occurring in 2024—close to the all-time record set in 2023. The average global cost of a data breach reached $4.88 million in 2024 (up 10% from 2023's $4.45M), with US breaches averaging $9.36 million. But these corporate costs tell only half the story. For individuals whose data is stolen, the consequences range from minor inconvenience (monitoring credit reports for years) to devastating financial ruin (identity theft draining bank accounts, fraudulent medical procedures creating false health records, ransomware criminals publishing intimate personal information online).

The good news? Legal protections and compensation mechanisms exist, from multibillion-dollar class action settlements (Meta $1.4 billion for biometric data violations, AT&T $177 million with up to $7,500 per person, Lehigh Valley Health $65 million with payouts up to $70,000 per patient) to individual GDPR Article 82 claims in Europe (€66,920-€141,240 for severe psychiatric harm), California's CCPA private right of action ($750 per violation statutory damages), and federal/state consumer protection lawsuits. Whether you join a class action (easier, lower payout per person but automatic if you file a claim) or pursue an individual lawsuit (harder, but potential for $25,000-$50,000+ damages for severe cases), this guide shows you exactly how to recover compensation.

2024: The Year of Record Data Breach Settlements

2024 has been a watershed year for data breach accountability, featuring the first, second, and sixth largest data breach securities class action settlements of all time, totaling $560 million. Here are the top settlements:

• Meta (Facebook): $1.4 billion - Settlement with Texas Attorney General for unlawful collection of biometric data (facial recognition) in violation of Texas Capture or Use of Biometric Identifier Act. This is the largest privacy settlement in US history.
• AT&T: $177 million - Class action settlement for two separate data breaches (2019 and 2024). Affected customers can receive up to $5,000 for the 2019 breach and up to $2,500 for the 2024 breach, plus 24 months of credit monitoring and identity protection services.
• Lehigh Valley Health Network: $65 million - Class action after ransomware breach affecting 600 patients and employees. Payouts range from $50 to $70,000 per person—the largest per-patient settlement for a healthcare ransomware breach. The high payouts reflect nude medical photos being published online by attackers.
• Marriott: $52 million - Settlement with 50 US states for multi-year breach affecting over 131 million users of Starwood guest reservation database (names, passport numbers, payment cards, loyalty points).
• Cencora: $40 million - Class action for February 2024 breach compromising sensitive consumer information.
• 23andMe: $30 million - Settlement for October 2023 breach affecting over 6 million users' ancestry and genetic data.
• Healthline Media (CCPA): $1.55 million - California AG's largest CCPA settlement to date. Healthline shared health data suggesting serious medical conditions with third parties for targeted advertising without proper opt-out.

Beyond these headline settlements, data breach litigation surged in 2024, totaling 1,488 class actions filed—the most data breach filings ever recorded and more than double the number filed just two years earlier. This explosion in litigation reflects both the increasing frequency of breaches (95% of which are financially motivated, a 24% increase since 2019) and growing awareness among consumers that they have legal rights and remedies.

Why Companies Keep Getting Breached: The $4.88M Question

If breaches cost companies an average of $4.88 million globally ($9.36M in the US), why do they keep happening? The answer is cost-benefit analysis gone wrong. For many companies, investing in robust cybersecurity (hiring expert staff, implementing zero-trust architecture, conducting regular penetration testing, encrypting data at rest and in transit) costs more upfront than the expected value of a breach: (probability of breach × average breach cost) - (insurance coverage). When companies calculate a 10% annual breach risk and have $5M cyber insurance, they may rationally underspend on security.

This perverse incentive is compounded by information asymmetry and moral hazard. Customers don't know which companies have good security until after a breach, so they can't vote with their wallets. Executives who cut security budgets pocket bonuses for "efficiency" but are rarely held personally liable when breaches occur years later. And companies know that class action settlements typically pay individuals pennies on the dollar (the $177M AT&T settlement divided among tens of millions of affected customers = ~$5-$50 each for most claimants), so the deterrent effect is weak.

Enter regulatory penalties and individual lawsuits. The EU's GDPR imposes fines up to €20 million or 4% of global annual turnover (whichever is greater)—Amazon was fined €746 million in 2021. California's CCPA allows individuals to sue for $750 per violation, creating potential exposure of hundreds of millions if every affected person sued. And individual lawsuits for severe harm (medical records breaches causing emotional distress, financial fraud draining savings) can yield $25,000-$50,000 verdicts that aggregate to massive liability if 1,000+ victims sue individually rather than joining class actions.

Types of Data Breaches and Typical Compensation

Not all data breaches are equal. Compensation depends on:

• Data sensitivity: Medical records > financial data > Social Security numbers > email addresses
• Actual harm: Financial fraud > identity theft > fear of future harm > no harm yet
• Company negligence: Failure to encrypt, ignoring known vulnerabilities, no security training
• Scale of breach: Millions affected (class action) vs. hundreds affected (individual claims viable)
• Jurisdiction: EU GDPR (emotional harm compensable) vs. US (requires actual loss in most states) vs. California CCPA (statutory damages)

Healthcare/Medical Records Breaches

Why they're valuable: HIPAA protections, highly sensitive data (HIV status, mental health, substance abuse, reproductive health), emotional distress from exposure, potential for discrimination (employment, insurance).

Typical compensation:

• Class action: $500-$5,000 per person (Lehigh Valley's $70K is exceptional due to nude photos published)
• Individual lawsuit: $10,000-$50,000 for severe emotional distress (depression, anxiety requiring treatment, reputational harm)
• GDPR (EU): €5,000-€20,000 typical, up to €141,240 for permanent psychiatric harm

Key cases: Lehigh Valley $65M ($50-$70K per person), Premera Blue Cross $10M ($50-$200 per person), Anthem $115M (~$50-$300 per person for 79M affected).

Financial Data Breaches

Why they're valuable: Direct financial harm (fraudulent charges, account takeover, credit card fraud), credit score damage, time spent disputing charges, potential for loan fraud.

Typical compensation:

• Class action: $100-$2,000 per person + documented losses (AT&T up to $7,500 is high end)
• Individual lawsuit: $5,000-$25,000 + actual losses (fraudulent charges, credit damage)
• Equifax 2017 settlement: $425M fund, up to $20,000 per person for documented losses, free credit monitoring

Key cases: AT&T $177M ($2,500-$7,500 range), Equifax $425M (up to $20K per person), Capital One $190M (~$100-$500 per person for 100M affected).

Social Media / Biometric Data Breaches

Why they're valuable: Privacy violations (facial recognition, location tracking), reputational harm (exposed posts/messages), potential for doxxing/harassment.

Typical compensation:

• Class action: $50-$500 per person (lower harm than medical/financial, but easier to prove violation)
• CCPA/GDPR: $750 statutory (CCPA) or €500-€5,000 (GDPR) for privacy violations

Key cases: Meta $1.4B biometric (Texas), 23andMe $30M (~$5-$50 per person for 6M affected), Facebook Cambridge Analytica $5B FTC fine (consumers received little).

Employer/HR Data Breaches

Why they're valuable: Social Security numbers, salary data, performance reviews, background checks, discrimination potential.

Typical compensation:

• Class action: $100-$1,000 per person + credit monitoring
• Individual lawsuit: $1,500-$10,000 for identity theft, higher if wrongful termination follows breach (rare)

Key cases: OPM (Office of Personnel Management) breach: 21.5M federal employees, $20M settlement (~$1-$5 per person, very low).

The Class Action vs. Individual Lawsuit Decision

When your data is breached, you face a strategic choice: join the class action lawsuit (if one exists or forms) or file an individual lawsuit. Here's how to decide:

Join Class Action If:

• Large-scale breach (100,000+ affected): Settlements divide total fund among all claimants, so per-person payout is low ($50-$500 typical), but it's easy money (just file claim form).
• Minor harm (data exposed but no fraud yet): Hard to prove individual damages, so class action's "exposure only" compensation ($50-$100) is all you'll get anyway.
• No time/money for lawyer: Class action requires no attorney (class counsel does all work for 25-33% of total settlement), no upfront cost.
• Moderate damages ($500-$5,000): Not enough to justify individual lawsuit costs, but meaningful in class action context.

File Individual Lawsuit If:

• Severe harm: Identity theft requiring years to fix, financial fraud >$5,000, medical records causing severe emotional distress (depression, anxiety, PTSD), job loss or discrimination following breach.
• Documented losses >$10,000: Class actions cap reimbursement (often $2,000-$5,000), but individual suits can recover full actual losses + emotional distress damages.
• Small breach (<500 affected): Class actions often don't form for small breaches (not economical for class counsel), so individual suit may be only option.
• GDPR jurisdiction (EU/UK): Article 82 allows non-material damage claims without proving financial loss—emotional distress, fear, anxiety alone support €1,000-€20,000 individual claims.
• CCPA jurisdiction (California): Statutory damages of $750 per violation mean even without actual losses, you can recover $750-$7,500 for serious breaches.

Can you do both? Generally no—opt-in class actions require you to choose: stay in class or opt out to sue individually. Opt-out class actions automatically include you unless you opt out. Read the class notice carefully. Opting out preserves individual lawsuit rights but forfeits class action settlement (which may ultimately be larger). Consult an attorney before opting out.