Data Misappropriation Lawsuits: Learn How Data Brokers Operate

Every click, swipe, and online purchase you make generates valuable information that may be disseminated online. From what time you wake up, to where you shop, to the websites you browse late at night, companies are quietly harvesting all this data and then selling it. These data misappropriation schemes are worth billions, yet consumers see none of the profit — only the privacy risks.

Behind the scenes, data brokers and big tech firms turn your personal information into a commodity, bundling and selling it to advertisers, insurers, and other corporations that find some use for manipulating it for their benefit. The dangers of this hidden marketplace are real, and many people have no idea their most intimate details — including health, financial, and location data — are being shared without their knowledge.

Contact our data misuse lawyers if you believe your data has been misappropriated without consent. We have the experience, dedication and resources to take on large corporations and data brokers that violate your legal rights. File a claim now because without facing accountability, companies and data brokers will continue to profit at the expense of consumers.

Filing a lawsuit is a big step, but it is one of the few options that can not only recoup compensation, but also bring transparency and reform to an otherwise hidden industry. Victims who speak up and pursue legal remedies help shape stronger protections for everyone.

Understanding Data Misappropriation

Data misappropriation refers to the unauthorized use, collection, or distribution of personal information in ways individuals neither approved nor reasonably anticipated. At its core, it reflects a loss of control over one’s digital identity. While companies may disclose some practices in privacy policies, many conceal activities that stretch or violate legal and ethical boundaries.

Examples of misuse include:

• Selling personal details without clear consent

• Handing over location data to advertisers or third parties

• Profiling individuals for targeted ads without transparency

• Gathering health or financial records without strong safeguards

• Leaving sensitive, unencrypted data exposed to hackers

How Businesses Turn Data Into Profit

For corporations across industries—from technology giants to retail apps—consumer information has become a lucrative asset. Data fuels advertising, shapes product development, and generates new revenue streams. Key ways companies monetize user information include:

• Targeted Advertising: Tracking browsing habits, purchases, and online activity to deliver ads designed to maximize conversions.

• Third-Party Data Transfers: Selling or sharing user records with partners, creating a hidden marketplace of unknown data holders.

• Behavioral Profiling: Merging data from multiple sources to predict consumer decisions and influence buying patterns.

• AI and Predictive Analytics: Using massive datasets to refine artificial intelligence tools, often at the expense of user privacy.

The Influence of Data Brokers

Data brokers sit at the center of this ecosystem. These firms collect, analyze, and resell personal information—sourcing it from businesses, public filings, and online behaviors. The scale is staggering: some of the largest brokers manage billions of data points on individuals.

The types of data often packaged and sold include:

• Basic identifiers like names, phone numbers, and addresses

• Purchasing history and financial transactions

• Education and employment records

• Health-related information

• Online browsing patterns and app activity

This information is marketed to advertisers, insurers, financial firms, and even government entities. Most consumers remain unaware that their data is being compiled, traded, and stored in these databases—with few practical ways to remove themselves.

Legal Protections and Consumer Rights

The dangers of unchecked data trading are not theoretical. Numerous lawsuits and enforcement actions by the Federal Trade Commission (FTC) highlight repeated failures by companies to secure the information entrusted to them.

Some state and federal laws attempt to regulate these practices, requiring disclosures, opt-out mechanisms, or stricter handling of sensitive records. However, protections remain inconsistent across jurisdictions, leaving many gaps in consumer rights.

Examples of key regulations:

• California Consumer Privacy Act (CCPA): Gives California residents the right to know what data is collected, request deletion, and opt out of sales.
• Health Insurance Portability and Accountability Act (HIPAA): Protects health data, though it does not cover wellness apps or non-traditional providers.
• Federal Trade Commission (FTC): Enforces actions against companies engaged in unfair or deceptive practices.

Legal Recourse for Data Misappropriation Victims

If a company misuses or fails to safeguard personal data, victims may have grounds for a lawsuit or class action claim. These lawsuits can seek compensation for:

• Financial losses due to fraud or identity theft
• Costs of credit monitoring and identity restoration
• Emotional distress and privacy invasion damages
• Punitive damages to hold companies accountable

Examples of Recent Data Misappropriation Class Actions

• The Nebraska Attorney General filed a lawsuit against GM and OnStar for secretly collecting and selling driver behavior data from over 14 million vehicles. These telematics data, collected without proper consent, were shared with data brokers and insurers to adjust rates and deny coverage. Nebraska is seeking restitution and a court injunction to halt the practices.
• The Federal Trade Commission (FTC) settled with data brokers Mobilewalla and Gravy Analytics over their sale of politically, religiously, and medically sensitive location data without consent. The brokers have agreed to cease such data collection and implement opt-out mechanisms—marking heightened regulatory scrutiny on sensitive data commodification.
• Another major verdict came when a jury awarded Google over $314 million in a class action suit filed on behalf of Android users in California. Plaintiffs argued that the company collected cellular data from idle phones without consent, imposing usage burdens on consumers while benefiting Google. The jury’s decision reflects increasing scrutiny on tech giants for covert data harvesting tactics.

Why You Should Hire The Lyon Firm for Data Misappropriation Cases

When your personal information is stolen, misused, or sold without your consent, the damage can be overwhelming. Victims often feel powerless against massive corporations and shadowy data brokers, but you don’t have to face these challenges alone. Hiring an experienced data privacy attorney can make the difference between silently suffering and obtaining justice.

The Lyon Firm has a proven track record of holding companies accountable for data breaches, data misuse, and deceptive privacy practices. Our legal team is dedicated to protecting consumers and ensuring that corporations do not profit from violating your rights. Joe Lyon has successfully represented individuals in complex cases involving data theft, ransomware attacks, consumer fraud, and unlawful sharing of personal information. By working with The Lyon Firm, you gain:

• Experience in complex data litigation – We understand the evolving landscape of data privacy law and how to pursue claims under state and federal regulations.
• Personalized representation – Every case is different. We take the time to understand how the data breach or misuse has impacted your life and tailor our strategy to maximize compensation.
• Aggressive advocacy – We are not afraid to challenge powerful corporations, insurance companies, or third-party data brokers who profit at your expense.
• Proven results – Our firm has recovered millions of dollars for clients harmed by corporate negligence, fraud, and privacy violations.

Your privacy matters, and your legal rights deserve to be defended. The Lyon Firm stands ready to fight for compensation, whether you’ve suffered financial losses, identity theft, emotional distress, or other damages related to data misuse. Contact our legal team for a free consultation.