In a heated session on February 28, 2025, the Nebraska Legislature debated the implications of Legislative Bill 241 (LB 241), which aims to raise the threshold for filing class action lawsuits related to data breaches. The discussion centered on whether this change would effectively deter frivolous lawsuits or simply complicate the legal landscape for legitimate claims.

Senator Dungan expressed skepticism about the bill's effectiveness, arguing that raising the standard for lawsuits would not prevent attorneys from filing cases they believe could lead to settlements. "If the concern is these lawsuits are being filed and they're allegedly frivolous... raising the standard doesn't prevent somebody from filing the lawsuit," he stated. Dungan emphasized that while the debate on the standard of proof is valid, LB 241 does not address the initial filing of lawsuits.

In contrast, Senator Jacobson supported the bill, asserting that a higher threshold would discourage attorneys from pursuing cases they know they cannot win. He argued that proving gross negligence would be significantly more challenging, thus protecting businesses that follow proper data security protocols. "No one wants a data breach... you should be able to be protected as long as you've done all the things necessary," Jacobson said.

The session also included discussions about an amendment (AM 474) aimed at ensuring that the bill does not undermine existing data privacy laws. Senator Kavanaugh, who opposed LB 241, highlighted concerns about the potential for companies to act unreasonably with sensitive data, such as biometric information. He urged colleagues to support the amendment to clarify that the bill would not repeal protections under the Data Privacy Act.

As the debate concluded, the Nebraska Legislature faced a critical decision on the balance between protecting businesses from frivolous lawsuits and safeguarding consumer rights in the realm of data privacy. The outcome of this legislation could have lasting implications for how data breaches are handled in the state, with lawmakers divided on the best approach to achieve both accountability and protection.