B2B Data Platform Vendor Settling Breach Claims for $8.1M

In a sign of the times, a B2B vendor of file-sharing software has moved to settle class-action claims involving a data breach for $8.1M. The vendor does not directly acquire information from consumers; rather, its large business customers (including grocery stores and banks) collect such information from consumers and use the defendant's software to manage it. Many of those customers are also defending legal claims related to the data breach.  

Settlements such as this one are likely to be increasingly common, as privacy legislation increasingly requires the protection of consumer data by both B2C companies and their technology vendors. Being a technology service provider in today's environment means being aware of and attentive to the increasing role that data privacy and security play at all levels of the value chain.