Tag Archives: Cyber security

Guest Post: Think the SEC EDGAR Data Breach Involved Insider Trading? Think Again.

The SEC’s disclosure that its EDGAR system had been had hacked was big news last week, as was the accompanying disclosure that the information accessed may have been used for improper trading. In the following guest post, John Reed Stark takes a look at the interesting and important legal issues that might arise if the authorities … Continue Reading

Wyndham Worldwide Settles Data Breach-Related FTC Enforcement Action

According to the company’s December 9, 2015 press release (here), Wyndham Worldwide has reached a settlement with the Federal Trade Commission in the long-running and high-profile civil action the agency filed against the company and its affiliates in connection with data breaches at the company during the period 2008-2010. Under the terms of the settlement, … Continue Reading

FTC Data Breach-Related Enforcement Action Dismissed Based on Lack of Alleged Consumer Harm

Following the Third Circuit’s August 2015 decision in which the appellate court affirmed the Federal Trade Commission’s authority to pursue an enforcement action against Wyndham Worldwide alleging that the company failed to make reasonable efforts to protect consumers’ private information, there have been concerns that other companies experiencing data breaches could be the target of … Continue Reading

As Part of White House Cyber Security Initiative, President Proposes Uniform Data Notification Rules

As previously discussed on this blog (refer for example here), over the years there have been a number of different responses from the federal government to the threat of cyberattacks on U.S. companies and infrastructure, but overall the government’s track record on the issue is mixed. However, according to a January 12, 2015 Wall Street … 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

Up Next: Cyber Insurance Requirements for Banks?

As I noted in a post last week, in a speech earlier this month in which she outlined the steps bank boards can take to address cybersecurity issues, Sarah Raskin, the second-ranking official at the U.S. Department of Treasury, laid out the reasons why banking institutions should be investing in cyber insurance. This speech is … 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

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

Cyber Breach Disclosures and the Impact on Companies’ Share Prices

The possibility of securities litigation following the disclosure of  a cyber security breach has been a topic of significant recent attention, including on this site. There already have been securities class action lawsuits filed following significant cyber breaches, at least in some cases. More recently, however, the stock prices of several major companies that recently … Continue Reading

Smaller Companies Should Consider Cyber-Liability Insurance

Smaller companies increasingly are the subject of data breaches  and those smaller companies “are the number-one target of cyber-espionage attackers,” according to a recent study detailed in a April 24, 2013 CFO.com article entitled “Should You Consider Cyber Insurance?” (here). Smaller companies increasingly are the subject of cyber attacks due to “inadequate security infrastructure for … Continue Reading

Will Cybersecurity Issues Drive the Next Big Securities Litigation Wave?

I am sure many readers were disturbed as I was by the February 19, 2013 New York Times article reporting that a Chinese army unit apparently has been executing a concentrated cyber-hacking program targeting U.S. companies and critical U.S. infrastructure. (The report of consulting firm Mandiant that was the basis of the Times article can be … Continue Reading

Employer Social Media Policies, Cyber Security and Other Web Notes

As the various forms of social media have become increasingly pervasive, employers have struggled with appropriate responses to employees’ use of the social media sites. One question in particular that has arisen is the extent to which employers can seek to regulate and even discipline employees’ use of social media to comment on the employer … Continue Reading

Guest Post: Cyber Security and Data Breaches — Why Directors and Officers Should Be Concerned

I am pleased to publish below an article by my good friend Richard J. Bortnick (pictured left) concerning the directors’ and officers’ liability issues related to cyber security and data breaches. Rick is a Member of the Cozen O’Connor law firm and he is also the co-author of the CyberInquirer blog. This article first appeared … Continue Reading
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