Companies that do business in California can expect to see class action litigation if they become the victim of a data breach, but showing a good cybersecurity posture and implementing arbitration agreements may be the best defense.

“I think those of us on the defense side are speculating over whether it’s going to be [on] Jan. 1 or Jan. 2,” Anne Johnson Palmer, a partner at Ropes & Gray in San Francisco, said. “Any company that experiences a data breach is likely to see one of these cases.”