Group lawsuits after data breaches are rising in the UK and EU.  Regulators (like the ICO) still issue fines and guidance, but claimants are increasingly using GDPR rights to sue en masse. High-profile cases show that both customers and employees can bring claims for distress and risk of harm, even with no direct loss. This means a breach can trigger costly compensation, legal battles and reputational damage. Senior leaders should treat this as a board-level issue, with clear accountability for data risk, rather than leaving it to IT. Ensure strong governance, minimise the data you hold, and regularly test your breach response plan.

Alongside ICO investigations and fines, companies now face group litigation and GDPR claims from those affected. Under the EU’s new Representative Actions Directive (and similar UK rules), “class action” style suits are on the rise. Recent court decisions, like Farley v Paymaster (Sussex Police) and the ECJ’s Quirinbank case, make it easier for individuals to claim non-material damages (anxiety, distress, fear of misuse) even if no actual theft occurred. In short, individuals affected by a breach can band together like never before.

This trend is already materialising in the UK. Law firms have launched mass claims after major hacks. For example, the Marks & Spencer cyberattack of 2025 (which shut down online sales and exposed customer data) prompted a Scottish law firm to start an “unprecedented” opt-in class action against M&S. One campaign reports over 10,000 customers checking eligibility to join the claim (with thousands already registered). Similarly, Co-op Group’s 2025 breach affected all 6.5m members’ data and is expected to spawn collective claims for compensation. Even older breaches have not gone away with ongoing group claims exist for British Airways (2018 hack), Equifax (2017), TalkTalk (2015), Virgin Media (2020).

Legal, financial and reputational risks

Private group claims magnify the stakes of a breach. Legally, GDPR entitles individuals to compensation for material or non-material damage from any breach of the law. Courts now recognise that “mere fear” of identity misuse can count as harm where that fear is well-founded. This means even emails sent to the wrong address (without evidence of fraud) can lead to claims. Multiply that by hundreds or thousands of victims, and the payouts and lawyers’ fees can be huge. One report suggests that previous UK group settlements have averaged more than £6,000 per person.

Financially, companies face not just compensation but also fines and costs. The ICO’s fines for data security failures have reached eye-watering sums. For example, Capita was fined £14m for a 2023 breach of 6.6 million records including pension and staff data.. And that is just the regulatory side. If courts award damages or order injunctions, the total liability could dwarf any fine. Even if damages are relatively small per person, the public and employee relations fallout can be severe. Unhappy customers and employees can multiply the reputational damage.

Mitigation: lead from the top

All of the above means boards and CEOs must treat data protection as a strategic risk, not an IT checkbox. The first line of defence is data minimisation: only collect and retain what you truly need. Excess HR data or customer information is a standing liability, not an asset. If you do not have it, it cannot leak. Next, enforce strong security controls: multi-factor authentication, encryption, segmentation and up-to-date patching are essential. Ensure your breach response plan is robust, exercise it under realistic scenarios, include legal counsel and PR in drills, and think carefully about any communications, weighing the risk and timing of alerts.

Crucially, governance must be embedded it is vital to make data risk a regular board agenda item. Conduct periodic assessments and ask hard questions: What personal data do we hold, and why? How quickly could we detect and isolate a breach?

Lead a culture of accountability so that every department treats GDPR compliance as fundamental. A well-prepared organisation can not only reduce the chance of breaches but also demonstrate due diligence if claims arise, a factor courts and regulators will scrutinise. Boards that can show they asked the right questions and acted on the answers will be in a stronger position with both regulators and claimants.

Checklist for leaders

• Governance & oversight: Ensure data protection is discussed at board level. Regularly review data risk and incident preparedness. Nominate an owner for data risk with clear reporting lines.
• Data minimisation: Audit what personal data you collect (especially special-category personal data) and delete anything unnecessary. Limit access on a need-to-know basis. Build data minimisation into new projects by design, not as an afterthought.
• Security controls: Invest in strong cybersecurity (encryption, multi-factor authentication, intrusion monitoring, staff training). Regularly test and patch systems. Use independent assurance or penetration testing to validate internal claims about security.
• Incident response: Have a clear data breach procedure in place. Document everything, perform impact assessments, and balance transparency with risk before notifying individuals. Rehearse your procedure through simulations so senior leaders know their roles under pressure.
• Supplier management: Check that suppliers (for example, cloud providers or payroll processors) also have top-notch security. Contracts should allocate breach liability and require prompt notification.
• Legal preparedness: Carry appropriate cyber and liability insurance. Plan for swift, united communication with all stakeholders after a breach. Align your legal, risk and communications teams so messages to regulators, customers and staff are consistent.

Turning data breaches into a managed risk, not a crisis

Leaders can turn data risk into a managed discipline rather than a crisis lottery by using Data Support Hub to underpin their GDPR compliance. The platform gives you one place to map your data, document controls and keep key artefacts, such as breach procedures and SAR logs, current, so you are not scrambling for answers when regulators or claimant firms start asking difficult questions. Guided breach tools and step-by-step workflows help your teams spot incidents quickly, assess impact, meet the 72‑hour ICO deadline and generate regulator‑ready reports, cutting the risk of mistakes that can fuel group claims. Integrated training, a practical knowledge base and task tracking then hard‑wire good practice into day‑to‑day operations, so managers across the business understand their responsibilities, can evidence compliance and can focus on growing the business rather than firefighting the next breach.