Litigation and regulatory investigation are virtually inevitable when a major consumer data security breach occurs. Costs are substantial even when an early court dismissal is obtained or an investigation is closed. Obtaining early court dismissal is becoming more and more difficult, although a recent U.S. Supreme Court decision—Clapper v. Amnesty International—could be a game-changer. State and federal regulators are also becoming more aggressive through enforcement of Section 5 of the FTC Act, the Gramm-Leach-Bliley Act and HIPPA, as well as substantive state statutes, making it more difficult to obtain closure of an investigation. This presentation will discuss the latest developments in theories of liability and injury put forth by the plaintiffs’ bar, as well as state and federal regulators, and where the courts have come out with respect to these theories.