LinkedIn Escapes Cyber-Liability Exposure
In June 2012, the popular social networking website LinkedIn was hacked resulting in approximately 6.4 million passwords stolen from the website. Within hours of the incident, the passwords were posted on the internet and were used to direct traffic to fraudulent websites. The massive security breach also resulted in a class action lawsuit against “the world’s largest professional network” in the Northern District of California. The plaintiff class alleged that LinkedIn failed to adequately and properly secure the personal information stored on its website. This is the classic example of cyber-liability exposure.