Managed Program Models and Class Action Lawsuits

No business wants to find itself the subject of a class action lawsuit, but a growing number of organizations are finding themselves in that unwelcome position because of alleged breaches of confidential information.  Such breaches sometimes occur as a result of carelessness on the part of employees transporting physical repositories of data such as laptops or portable hard drives, but the majority of them are electronic breaches that happen when security measures fail to keep out a malicious attack launched through cyberspace.

Adam Greene of the Washington law firm David Wright Tremaine sums up the problem succinctly: "The recent surge in class action lawsuits is yet another compelling reason for organizations to make necessary investments in privacy and security safeguards."  Greene added "defending such a suit represents a significant drain of time and money and ensures unwelcome headlines.  Additionally, if one of these suits succeeded in court, the damages could be staggering and the precedent could have a huge impact across the industry."

Businesses large and small can take proactive steps to make sure that security breaches and the lawsuits they can generate are as unlikely as possible.  One of the most powerful of these steps is to implement a managed programs model for IT services.  In this model, an IT company supplies an expert who visits a business on a weekly or other scheduled basis to see to routine maintenance that can sometimes fall through the cracks when assigned to busy company personnel.  Such tasks generally include cyber security measures such as updating and testing firewalls and other protection against malware.


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