LinkedIn faces a $5 million class action lawsuit

In today's highly technological world, companies must hold high standards for data security, especially with the latest movements toward utilizing mobile devices in the workplace and distributing company information through cloud computing. Businesses at risk for data breaches could stand to lose millions if clients pursue legal action. In such cases, business lawyers in Phoenix could provide the services necessary to defend a company that committed a security breach.

The social-networking giant LinkedIn allegedly committed such a security breach and is now facing a $5 million class action lawsuit.

The suit comes in response to a computer hacker posting more than six million LinkedIn passwords on a password-cracking forum, according to InformationWeek Security. The initial complaint was filed three days ago in U.S. District Court by plaintiff Katie Szpyrka, a real estate associate from Chicago.

Szpyrka registered with LinkedIn at the end of 2010 and has been paying extra to use a premium account on the social networking site. However, because of the security breach, Szpyrka no longer has any connections on her account.

"Through its Privacy Policy, LinkedIn promises its users that 'all information that [they] provide [to LinkedIn] will be protected with industry standard protocols and technology," The lawsuit states. "In direct contradiction to this promise, LinkedIn failed to comply with basic industry standards by maintaining millions of users' PII in its servers' databases in a weak encryption format, and without implementing other crucial security measures."

However, officials at LinkedIn claim that no members have been harmed because of this incident and no account has been breached.

Companies that have been accused of data infringement – or that have such a claim – may need to speak to a law firm in Phoenix that can provide the necessary business law help to protect such a firm.

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