LINCOLN — Nebraska lawmakers gave first-round approval Wednesday to a bill that would broadly shield private companies from class-action lawsuits stemming from data breaches that occur on their watch. One Democrat joined nearly every Republican in the state's formally nonpartisan Legislature to advance the proposed law, which opponents argued will "make it harder for companies to be held accountable in the event that they actually are negligent with your personal information."

Sponsored by Sen. Bob Hallstrom of Syracuse, the bill (LB241) would prevent companies from being held liable in class-action lawsuits over data breaches unless the breach was caused by their own "willful, wanton, or gross negligence." Hallstrom and his Republican allies in the Legislature cast the proposal as one meant to protect small businesses, which Hallstrom said were at risk of paying "significant settlements" and attorneys fees in the face of class-action lawsuits accusing them of acting with mere negligence — rather than gross negligence — when handling sensitive customer data.

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