
Managed Service Providers (MSPs) sit at the heart of their clients’ IT and cybersecurity. But when it comes to data breaches, MSPs often underestimate who’s paying attention. It’s not just regulators and customers—it’s also plaintiff attorneys eager to file class-action lawsuits.
How Attorneys Learn About Breaches
Traditionally, law firms relied on media coverage or formal breach notifications to identify potential cases. But things have changed. Today:
- State “Name and Shame” Lists: States like New York and California require organizations to publicly report breaches. The state then posts the details for consumers—lists that attorneys eagerly mine for new class-action opportunities.
- Dark Web & Breach Tracking Sites: Plaintiff firms monitor hacker leak sites and tools like ransomware.live (which tracks claimed, not confirmed breaches). These sites spotlight organizations hit by ransomware—even before victims finish their incident response.
MSPs in the Crosshairs
Recent examples show that no MSP is immune. Breaches at large cybersecurity companies as well as smaller firms like Comport Technology have been flagged on ransomware.live. These entries give attorneys a running start—they know the victim, the type of data stolen, and the potential class members before a single headline appears.
The Legal Angle
Once a breach is public, legal action often follows:
- Attorneys typically work on contingency—taking about 33% of the settlement.
- They send demand letters quickly, often within days of a breach notice appearing online.
- Even small firms can be sued if sensitive data (like divorce records or financial details) leaks.
What MSPs Should Do
- Strengthen Breach Prevention: Invest in layered security for yourself and your clients.
- Improve Incident Response: Attorneys are watching; speed matters.
- Prepare for Legal Fallout: Expect demand letters—don’t be surprised when they arrive.
Conclusion
Breaches are no longer private, and attorneys no longer wait for news reports. They’re watching state lists and breach-tracking sites daily. For MSPs, that means legal exposure isn’t a “what if”—it’s a “when.”