Ken Suh, Senior Counsel in Locke Lord’s Chicago office and Privacy and Cybersecurity Practice Group, was quoted by Law360 on Zoom's disputes with two groups of excess insurers involving legal costs over allegations of data security issues. Zoom’s business exploded exponentially and without warning during the COVID-19-related lockdowns, making the company vulnerable to security breaches and ultimately a massive privacy class action, which led to this significant coverage litigation, Suh explains.
“Popularity in the market is often perceived as an opportunity by bad actors to test a company's cybersecurity defenses, which in turn attracts additional scrutiny by regulators," Suh added. “The increased cybersecurity and privacy risks raise the likelihood of a breach or regulatory investigation, which in turn raises the risk of a privacy class action arising from a breach or facts that are uncovered and made public during a regulatory investigation.”
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