I have been defending them but there are things they
could do, though I don't think they should be legally required to do so.
Where I work the security team monitors PW leaks and run them against our userbase if we find matches we lock their accounts and force a reset, that password also goes into a file and becomes pema-banned from being chosen.
we also force multifactor, which isn't bullet proof (heck if you used the same TOTP in 2 sites your hex key could get stolen) but it does go a long way. 2 factor is super annoying though and lots of places only offer crap methods like SMS (I loath to give out my phone number). personally I'd rather use just a strong site-specific password than be forced to provide my phone number.