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Ransomware litigation surges as cybercriminals target businesses

Ransomware litigation has seen a surge as cybercriminals target businesses of all sizes. The Ransomware-as-a-Service business model has made it easier for criminals to carry out attacks, resulting in a rise in lawsuits. CDK Global, a major industry software vendor, recently fell victim to a ransomware attack, causing operations at thousands of car dealerships to come to a halt. The attack led to multiple lawsuits being filed against CDK, with claims of compromised personal information and financial losses. The attack bears similarities to the high-profile attack on Change Healthcare earlier this year, which also resulted in numerous lawsuits. The increase in ransomware attacks has led to a record-breaking number of complaints being filed in federal court, indicating a growing trend in litigation. As these attacks become more common, defendants will find it harder to argue that they were unforeseeable, making negligence claims easier for plaintiffs. Higher cybersecurity standards may be necessary to defend against breach of duty allegations.

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