Can Your Business be Liable for an Employee’s Intentional Data Leak?
Revision Legal has a post about insider leaks. The article starts by discussing the Morrisons case in the UK, where an employee vindictively leaked data. In a ruling that surprised many, the court held that although Morrisons was a victim of their employee, other employees who sued Morrisons could hold Morrisons liable:
This creates, in effect, a form a strict liability for an employee data leak (at least in the UK). If the ruling is upheld, Morrisons will face a massive legal liability and, without question, the remaining 94,500 employees will join the class action or file their own lawsuits. Further, it is possible that British regulators will follow the court’s ruling and impose heavy regulatory fines and penalties.
The article then turns to legal principles in the U.S. that would relate to holding an employer liable for an intentional leak by an employee. As the authors note, it’s “complicated.”
Read more on JDSupra.