Tag Archives: cyber liability

Guest Post: Cyber & Privacy Policy Exclusions: Analyzing Differences, Negotiating Modifications

The exclusions are an important part of any liability insurance policy, but this is particularly true of cyber liability insurance polices. In the following guest post, Robert Bregman, CPCU, MLIS, RPLU, Senior Research Analyst, International Risk Management Institute, Inc., takes a look at the ten of the most common exclusions found in cyber liability and … Continue Reading

O.K., This Is a Big Deal: 7th Cir. Reinstates Neiman Marcus Consumer Data Breach Class Action

In a ruling that could provide an important boost future consumer data breach class action litigation, the Seventh Circuit has reinstated the Neiman Marcus data breach lawsuit, ruling that the district court erred in concluding that the plaintiffs’ fear of future harm from the breach was insufficient to establish standing to pursue their claims. As Alison … Continue Reading

Next Up: A Home Depot Data Breach-Related D&O Lawsuit?

After claimants filed shareholders’ data breach-related derivative suits against the boards of Target (here) and Wyndham Worldwide (here), a number of commentators (including me) asked whether we could see a wave of cybersecurity related D&O lawsuits. Interestingly, since these two lawsuits were filed more than a year ago, there have been no further lawsuits of … Continue Reading

Guest Post: Courts Uphold California Privacy Claims Despite Vague Allegations: Opening The Litigation Floodgates?

Among the many concerns that arise whenever unauthorized appropriation or use of consumer data occurs is the possible violation of the consumers’ privacy that the access may represent. In numerous cases, aggrieved parties have tried to assert claims for these alleged privacy violations, but by and large these attempts have not been successful. However, as … Continue Reading

Guest Post: Is Employee Awareness and Training the Holy Grail of Cybersecurity?

In the current environment, most organizations are aware of the potential threats to their firms from a breach of their data systems and networks. Among the ways companies can protect themselves from these types of threats is through improved employee awareness and training. In the following guest post, Paul Ferrillo and Randi Singer of the … Continue Reading

Will Investors Sue Over the Sony Hack Attack?

 As I noted in my recent rundown of the top D&O stories of 2014, one of the most important developments during the year just finished was the emergence of cyber security as a D&O liability concern. During 2014, plaintiff shareholders launched cyber breach-related derivative lawsuits against the boards of Target and Wyndham (about which refer … Continue Reading

Guest Post: Cyber Security Indeed: Derivative Action Dismissed Where Board Proactively Addressed Cyber Risks and Exposures

The derivative lawsuit filed against the board of Wyndham Worldwide Corporation in connection with the series of cyber breaches the company had experienced was being closely watched as possibly representative of a potential new area liability exposure for corporate directors and officers. However, as I discussed in a prior post (here), on October 20, 2014, … Continue Reading

Dismissal Granted in Cyber Breach-Related Derivative Suit Filed Against Wyndham Officials

 Along with the separate derivative lawsuit filed against Target Corporation’s board, the cyber breach-related derivate action filed against Wyndham Worldwide Corporation’s board has been closely watched as representative of a potential new area  liability exposure for corporate directors and officers.  However, in an October 20, 2014 opinion, District of New Jersey Judge Stanley Chesler, applying … Continue Reading

Guest Post: Cyber Security and Cyber Governance: Federal Regulation and Oversight – Today and Tomorrow

It seems that every day there is yet another story in the business pages about a significant data breach at a major company. Cybersecurity is an increasingly important topic for companies and their shareholders, and the problems with cybersecurity are an increasing concern in Washington as well. In the following guest post Paul A. Ferrillo … Continue Reading

Guest Post: The Cloud, Cyber Security and Cloud Cyber Governance: What Every Director Needs to Know

As I have noted frequently on this blog (most recently here), it is becoming increasingly clear that cybersecurity is viewed as a board level issue. At the same time that many boards have taken up the concerns surrounding cybersecurity issues, their companies increasingly are becoming dependent on cloud computing – which potentially could make their … Continue Reading

More About Stories We’re Following

Cybersecurity as a D&O Liability Issue: I have noted in prior posts on this site (refer for example here) that cybersecurity represents, among other things, a D&O liability exposure. The recent lawsuits filed against Target (refer here) and Wyndham Worldwide (refer here) underscore this point. In addition, at least according to a July 7, 2014 Bloomberg … Continue Reading

SEC Commissioner Aguilar Addresses Cybersecurity Oversight Responsibilities of Corporate Boards

In a June 10, 2014 speech entitled “Boards of Directors, Corporate Governance and Cyber-Risks: Sharpening the Focus” delivered at the New York Stock Exchange, SEC Commissioner Luis A. Aguilar highlighted the critical importance of the involvement of boards of directors in cybersecurity oversight. In his speech, Aguilar stressed that “ensuring the adequacy of a company’s … Continue Reading

Guest Post: Cyber Security, Cyber Governance, and Cyber Insurance: What Every Public Company Director Needs to Know

  As I have frequently noted on this site (refer, for example, here), cyber security issues increasingly are a board level concern, and indeed, recent shareholder litigation has shown that investors intend to hold board members accountable when data breaches cause problems for their companies.  In the following guest article, which was previously published as a … Continue Reading

Wyndham Worldwide Board Hit with Cyber Breach-Related Derivative Lawsuit

 In what is the latest example of the potential cybersecurity-related liability of corporate boards, a shareholder for Wyndham Worldwide Corporation has initiated a derivative lawsuit against certain directors and officers of the company, as well as against the company itself as nominal defendant, related to the three data breaches the company the company and its … Continue Reading

District Court Upholds FTC’s Authority to Bring Data Breach Enforcement Action

It is a dangerous world out there. Among many other things, companies and other organizations are increasingly vulnerable to data security attacks from would-be hackers. Indeed, an April 8, 2014 New York Times article entitled “Hackers Lurking in Vents and Soda Machines” (here) notes that “companies scrambling to seal up their systems from hackers and … Continue Reading

What Are the Bad Guys Up to Now? Hacking Health-Care Records, Apparently

As if it were not bad enough that hackers are attacking retail businesses like Target and Neiman Marcus to obtain consumer credit card information, it turns out that the bad guys are also targeting health-care records. According to sources cited in a February 18, 2014 Wall Street Journal report entitled “Nursing Homes Are Exposed to … Continue Reading

Target Directors and Officers Hit with Derivative Suits Based on Data Breach

  I have frequently noted that among the many exposures a company experiencing a data breach could encounter is the possibility of a shareholder suit alleging that the company’s board breached their fiduciary duties by failing to take sufficient steps to protect the company from a breach and its consequences. This possibility has now been … Continue Reading
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