If the data breach was from a small business, there is more of a chance that you would file an individual lawsuit if there were not numerous victims who were similarly situated to you.
Consumers in Texas have been filing lawsuits against companies in the wake of data breaches. An experienced data breach litigation lawyer at Federman & Sherwood can fight for you.
You have the legal right to sue any business that has failed in their basic obligation to protect your personal data, whether it is large or small. Victimized consumers can use one or more of several potential legal grounds to hold the business accountable. you may be eligible for financial compensation for the harm that you have suffered when you have been the victim of a data breach.
You can speak with an experienced data breach lawyer at Federman & Sherwood today to discuss your case. If you have a lawsuit against a business, we can represent you at every step of the way.
You Can Sue a Small Business Under a Number of Legal Theories
Although there is a new data security law in Texas, individuals do not have a private right of action to file a lawsuit against a small business that has failed to protect personal data. However, you do have the right to file a lawsuit against a small business under a number of other laws and legal theories. You can and should hold any business accountable when they have failed in their duty to safeguard your sensitive personal information.
There have been numerous recent lawsuits in Texas against both large and small businesses in the aftermath of data breaches. Hackers go after businesses both large and small. In fact, they succeed more often when they target a small business because they do not invest the necessary resources to protect sensitive data. In fact, a hacker may see attacking a small business as an “easy win” because there is a greater chance that they can gain access, and less of a possibility that their actions could be detected.
The law applies to small businesses the same as it does to larger companies. You can sue a small business the same as you would any other company. Since there is no statewide data privacy law that gives you a private right of action, you could sue the small business under other legal theories. For example, you could file a common law negligence lawsuit against the small business. When a business holds your sensitive information, they owe you a duty of care. If they have failed to uphold that duty of care by failing to institute reasonable safeguards to protect your data, they can be held legally accountable. In addition, you may be able to sue a small business for breach of contract. The agreement that you had with them that allowed the small business to hold your data imposes certain duties on the company. If they have failed to safeguard your data, they may have failed in the specific obligations that they owe you.
In addition, Texas small businesses are also being sued under the Texas Deceptive Trade Practices Act. The law prohibits businesses from using false and deceptive practices in their business. Conceivably, a data breach may fall under the category of false and deceptive practices. If the business engaged in deceptive practices, they would need to pay you damages. If their deceptive practices were knowing, they may owe you treble damages.
Filing a Data Breach Lawsuit Against a Texas Small Business
Your data breach lawyer would likely advise you to file a lawsuit under as many applicable grounds as possible. Most data breach lawsuits proceed under numerous legal theories, and they seek the following damages:

- Out of pocket losses
- Consequential damages
- Emotional distress
- Attorney’s fees
- Punitive damages (only awarded by a jury if you win a lawsuit, and there is egregious conduct)
If your data has been accessed, the small business would need to send you a notification of the fact. At that point, you should contact a data breach lawyer to discuss your case. Your data breach attorney would help you review your legal rights and determine whether you are in position to file or join a lawsuit. If the data breach was from a small business, there is more of a chance that you would file an individual lawsuit if there were not numerous victims who were similarly situated to you.
Contact a Texas Data Breach Law Firm Today
If your personal data was compromised because the business tasked with protecting it failed to do their job, reach out to a Texas data breach attorney at Federman & Sherwood. You can schedule a free initial consultation with one of our data breach lawyers by filling out an online contact form or by calling us today at (800) 237-1277. We have offices in Texas and Oklahoma, and we maintain a 50-state practice helping data breach victims.


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