How Much Compensation Can You Get in a Data Breach Lawsuit?

Imagine waking up to see hackers draining your bank account, destroying your credit score, and selling your personal information on the dark web. For millions of Americans, this is no longer a worst-case scenario but a harsh reality. Data breaches have become an all-too-common problem, with large companies and healthcare providers losing control over sensitive consumer data every year. 

While no amount of money can undo the damage caused by such breaches, legal recourse can provide a way to recover some of your financial losses. Many victims ask the question: How much compensation can I actually get in a data breach lawsuit?

The truth is, it varies widely depending on the nature of the breach, the financial damages suffered, the state where you live, and the specific laws that govern your claim. 

In this comprehensive guide, we’ll explore the types of compensation available, real-world settlement examples, and actionable steps you can take to maximize your compensation.

Understanding the Types of Compensation for Data Breach

Economic Damages

Economic damages are the most straightforward type of compensation. These damages are meant to cover measurable financial losses that result from a data breach. This includes:

• Fraudulent charges or unauthorized purchases made using your stolen credit card or bank account information. 
• Credit monitoring services that you may need to purchase to protect yourself from identity theft. 
• Bank fees or other charges incurred while you attempt to recover your financial security. 
• Lost income if the breach causes significant disruption to your work or business.

For example, in the Nebraska Medicine case, claimants could receive up to $300 for basic documented losses and $3,000 for extraordinary losses. Victims were also reimbursed at a rate of $20 per hour for time spent dealing with the aftermath of the breach. This reimbursement can add up quickly, especially when dealing with the fallout of a significant data breach.

Non-Economic Damages

In addition to economic damages, victims of data breaches can seek non-economic damages, which address emotional and psychological harm caused by the breach. Non-economic damages are intended to compensate for things that can’t be easily quantified in financial terms, such as:

• Anxiety and stress caused by the breach. 
• Emotional distress resulting from the fear of identity theft or the invasion of privacy. 
• Loss of privacy and the negative impact on a person’s ability to trust companies with their personal data.

States like California, New York, and Utah recognize these types of damages in their legal systems, but the availability and amount vary by jurisdiction. While California is more likely to award compensation for emotional distress, other states like Texas may limit non-economic damages. For instance, Utah law allows a breach victim to claim compensation for loss of privacy and emotional distress, but only under specific circumstances.

Statutory Penalties and Regulatory Fines

Beyond individual compensation, many states and countries impose regulatory fines and penalties on companies responsible for data breaches. These fines are often designed to punish negligent businesses and deter future breaches. Under U.S. federal law, companies can be penalized by regulatory bodies like the Federal Trade Commission (FTC) or the U.S. Department of Health and Human Services for violating consumer privacy protections, including:

• Fines under HIPAA (Health Insurance Portability and Accountability Act): Health data breaches are taken seriously, with penalties for non-compliance ranging from $100 to $50,000 per violation. If a healthcare provider fails to adequately protect personal health data, it could face substantial penalties. 
• Fines under the California Consumer Privacy Act (CCPA): This state law imposes fines for violating privacy rights, including up to $7,500 per intentional violation, providing additional legal recourse for data breach victims in California.

Real-World Data Breach Settlement Examples

High-Profile Corporate Settlements

• Equifax (2017): One of the largest data breaches in history, affecting nearly 147 million Americans. Equifax set aside $380.5 million to settle claims, but victims received only about $2.59 per person on average. In addition to this, Equifax created a separate $125 million fund to cover direct financial losses.

• Yahoo (2013–2014): Yahoo’s data breach, which impacted over 3 billion accounts, led to a $117.5 million settlement, with payouts averaging less than a dollar per affected user. 

• Anthem (2015): This healthcare data breach affected over 78 million people, resulting in a $115 million settlement. While individual payouts were higher than those in the Yahoo or Equifax cases, Anthem provided additional protections like credit monitoring for affected members. 

Healthcare and Medical Sector Settlements

• Tampa General Hospital (2023): In a breach that affected patient data, victims could receive up to $7,500 for documented extraordinary losses and $1,500 for ordinary losses. The hospital also offered identity protection services as part of the settlement. 

• Coastal Orthopedics (2023): Victims of this breach, which involved patient records, were eligible to receive up to $10,000 for documented losses, along with free credit monitoring and identity theft protection. 

Telecom and Tech Settlements

• T-Mobile (2021): The breach affected over 40 million customers. The company set aside $350 million in a class-action settlement. Eligible claimants were able to claim up to $25,000, with payments based on documented harm. 

• AT&T (2024): In a recent data breach, AT&T agreed to pay $177 million to settle claims. Affected individuals could claim up to $5,000 and receive up to 24 months of credit monitoring and identity protection services. 

Why Data Breach Compensation Varies So Much

Factors That Affect Your Compensation

The amount of compensation you can receive in a data breach lawsuit depends on several factors:

• The Scale of the Breach: Large-scale breaches (like Equifax or Yahoo) typically result in smaller payouts per person due to the number of affected individuals. Smaller breaches, such as those involving medical providers, often pay higher compensation because they affect fewer individuals.
   
• Jurisdictional Law: The legal framework in your state or country influences the amount you can claim. For example, in California, where data protection laws are robust, victims can claim higher damages under the CCPA. On the other hand, states like Texas may impose stricter caps on damages. 
• Documentation: Compensation generally depends on how well you document your losses. Victims who can provide receipts, fraud reports, and detailed records of their financial harm are more likely to receive larger settlements.

Estimating Your Potential Compensation

While compensation amounts vary significantly, here are some typical ranges:

• Minor Documented Losses: If your losses are relatively small, such as a few fraudulent charges or the cost of credit monitoring, you might receive between $100 and $750. 
• Moderate Losses: For more serious consequences, such as sustained identity theft or stolen personal data, payouts range from $1,500 to $10,000. 
• Severe Damages: If you’ve experienced significant financial loss or emotional distress due to the breach, compensation can reach $25,000 to $50,000, as seen in high-profile cases like T-Mobile and TracFone.

Steps to Maximize Your Data Breach Claim

• Step 1: Check If You’re Affected 
  • Before you take any action, confirm whether your data was involved in a breach. Companies typically notify victims of breaches, but you can also use tools like Have I Been Pwned to verify if your personal data has been compromised.
    
• Step 2: Gather Documentation 
  • To increase your chances of receiving compensation, gather as much evidence as possible, including: 
    • Bank statements showing fraudulent charges 
    • Receipts for credit monitoring or identity theft protection 
    • Any reports or correspondence with credit bureaus, fraud departments, or law enforcement
       
• Step 3: File Your Claim on Time 
  • Data breach settlements usually come with strict deadlines. For example, the AT&T settlement has a deadline of November 18, 2025. Missing the deadline could disqualify you from receiving compensation, so it’s important to file as soon as possible. 
    
• Step 4: Consider Legal Help 
  • If the damages are substantial and you’re unsure about filing a claim, consult a data breach attorney. An attorney can help you navigate the process, ensure that your claim is as strong as possible, and pursue higher compensation if necessary.
    
• Step 5: Protect Yourself Going Forward 
  • Even after the settlement, make sure to take steps to protect your future financial security. Consider freezing your credit with the three major bureaus (Experian, Equifax, and TransUnion), changing passwords, and monitoring your accounts regularly. 

Data breach compensation can vary significantly depending on the severity of the breach, your documented losses, and the laws of your state. Large class-action settlements, like those for Equifax and Yahoo, often result in minimal payouts per person. At the same time, smaller, more targeted data breaches (such as those affecting healthcare or telecom data) tend to offer higher payouts. The key to maximizing your compensation lies in documenting your losses, filing on time, and understanding your legal options.

Want to pursue your data breach compensation? Contact My Data Breach Attorney today to speak with our experienced attorneys and protect your rights.