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
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,
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
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
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
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
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
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
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
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