Florida Lawsuit Targets Litigation Funding Firm for Data Breach

Litigation funding has become a significant aspect of the legal landscape, much to the dismay of businesses and insurance companies grappling with substantial lawsuit verdicts. However, a Florida-based litigation financing firm, US Claims Capital, has found itself in hot water due to a data breach that occurred in January, sparking a potential class-action lawsuit against the company.

The complaint against US Claims alleges that the firm failed to adequately secure plaintiffs’ personal information and neglected to implement robust computer security measures, ultimately leading to a cyberattack. The lawsuit, filed in U.S. District Court in Miami on April 17, emphasizes the irreversible nature of exposing private information to cybercriminals. It highlights the far-reaching implications of the breach, asserting that the affected individuals’ private data is now forever exposed and vulnerable.

Leading the charge is Timothy Vactor, a Kansas resident portrayed in the court document as someone who meticulously safeguarded his personal information for years. The lawsuit seeks class-action certification to represent others who have engaged with US Claims, demanding compensatory and punitive damages, attorney fees, and additional costs. US Claims is yet to respond to the complaint, but their website indicates their focus on funding various lawsuits, including animal bite claims, with the promise of a more favorable financial arrangement for plaintiffs compared to other litigation funding companies.

The complaint does not specify the details of the injury suit that US Claims financed for the lead plaintiff, Vactor. Still, it does reveal that Vactor and other plaintiffs discovered the data breach through a letter from US Claims dated April 11. The firm’s investigation uncovered the unauthorized acquisition of certain information related to the affected individuals during the cyberattack. US Claims offered identity theft protection, cyber monitoring, insurance against financial losses, and assistance with resolving related issues to the victims.

Despite these measures, Vactor and other plaintiffs have faced the burdens of monitoring their credit reports, tackling an influx of spam emails, texts, and phone calls, among other challenges following the data breach. The aftermath of the breach has not only raised concerns about data security and privacy but has also imposed financial and emotional costs on the affected individuals.

In response to the growing concerns surrounding litigation financing and data security breaches, lawmakers in Georgia have imposed limits on litigation funding practices to protect consumers and uphold the integrity of the legal system. This development underscores the increasing scrutiny and regulatory measures being implemented to address the complexities and risks associated with third-party litigation financing in the legal domain.