Appleby Data Breach Highlights Law Firms' Unique Risks
Partner Mark Mao is quoted in a Law360 story about a recent data breach at Bermuda-based Appleby law firm. The leak included investment data of high-profile clients – documents were later published publicly by the International Consortium of Investigative Journalists in what have been dubbed the Paradise Papers. Mao is quoted several times in the story, saying, “What might separate the Paradise Papers incident from others is that a plaintiffs attorney might use the type of work involved to test the waters in privacy litigation for nonstatutory damages. If you can convince a plaintiff or two to agree to representation, you might be able to use the ‘public hate’ that has been generated by the leak to argue actual damages, showing how secrecy was part of what was purchased. It could be spun into a good story.” He concludes, saying, “The practical lesson for law firms here is be careful of your vendors, and whether you would ever so upset any of them such that they would want to take vengeance against you. The leaked details suggest an ‘insider’ leak from the vendor side. It might have also been someone with a vendetta against a particular client, and once some documents were leaked, the plot just took on a life of its own. But the case demonstrates that law firms need to continue being wary of vendors, and giving access to them.”