Recently, Nederlander Theatrical Corp. reported that the company was the target of a cyberattack affecting the company’s computer network and the sensitive consumer data contained on the network. According to the Nederlander, the breach resulted in the names and Social Security numbers of affected parties being leaked. As many as 14,318 people are believed to have been impacted by the Nederlander breach. On May 20, 2022, Nederlander filed official notice of the breach and sent out data breach letters to all affected parties.

If you received a data breach notification, it is essential you understand what is at risk and what you can do about it. To learn more about how to protect yourself from becoming a victim of fraud or identity theft and what your legal options are in the wake of the Nederlander Theatrical Corp. data breach, please see our recent piece on the topic here.

What We Know About the Nederlander Theatrical Corp. Data Breach

According to the recent notice provided to those who were impacted by the breach, Nederlander first detected a problem on November 21, 2021, when the company became aware of suspicious activity on its computer network. In response, Nederlander secured its systems and, with the assistance of third-party experts, launched an investigation into the incident.

The investigation confirmed that the company was indeed the victim of a cyberattack and that certain files on its network were subject to unauthorized access. Upon discovering that sensitive consumer data was contained in the files that were accessible to the unauthorized party, Nederlander Theatrical Corp. reviewed the affected files in hopes of determining exactly what information was compromised and to whom it belonged.

While the breached information varies depending on the individual, it may include your name and Social Security number. According to an official filing by Nederlander, the company believes that the breach affected the information of 14,318 individuals.

On May 20, 2022, Nederlander Theatrical Corp. sent everyone who was impacted by the breach data breach letters explaining the incident and what they can do to protect themselves from the possibility of identity theft or fraud.

More Information About Nederlander Theatrical Corp.

Nederlander Theatrical Corp. is an entertainment company based in New York, New York. The company owns and operates several venues across the country, including in New York, North Carolina, California, Illinois and South Carolina. Nederlander Theatrical Corp. also owns various concert venues, including City National Civic of San Jose, Vina Robles Amphitheater, Skyline Theater at Long Center, and City National Grove of Anaheim. Nederlander Theatrical Corp. has about 150 employees and brings in roughly $27 million in annual revenue.

Can Data Breach Victims Sue a Company Following a Breach of Information?

Yes, in theory, data breach victims have a legal remedy against companies whose negligence results in the leaking of their personal information. Typically, given the number of victims involved in a breach, these claims are brought as class action lawsuits. A class action lawsuit is one in which multiple victims all suffered similar harms as a result of a company’s negligent conduct.

Data breach class action lawsuits can proceed under various theories; however, most are based on the legal concept of negligence. Thus, if a company’s negligence resulted in consumer information being compromised, the company may be liable for any resulting harms. Recently, courts have held that a victim doesn’t necessarily need to fall victim to identity theft or fraud to pursue a claim; the increased risk of fraud in the future is enough to bring a claim.

Under existing data breach laws, are several ways a company can act negligently with regard to consumer information. Below are just a few examples:

• An employee of the company fails to follow the appropriate procedures when handling consumer data;

• A company fails to employ an up-to-date data security system or relies on an otherwise inadequate system;

• A company mistakenly sends consumer information to an unauthorized party; or

• An employee responds to a phishing attack, either by clicking on a link or providing sensitive information to an unauthorized party.

Of course, these are just a few examples of negligence in the data breach context; there are many others.

Notably, at this point, there is no indication suggesting that Nederlander Theatrical Corp was negligent; however, the investigation into the breach is ongoing. If evidence emerges that Nederlander Theatrical Corp failed to employ the necessary safeguards to protect consumer data or was otherwise negligent, the company may be liable through a data breach class action lawsuit.