Shouldn't someone have to show actual damages in order to sue? The California Unfair Competition Act seems to be about unlawful, unfair or fraudulent business practices - I don't immediately see how that is relevant.

My guess is this is going to just force Dropbox into some kind of settlement because it will be cheaper than fighting it. And the lawyers promoting this get a nice cut, of course.

Does corporate insurance cover this sort of thing? How does a company protect itself from these kind of lawsuits?