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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...

A Critical Question Directors Should Be Asking Company Management About Cyber Risk

Cyber security and related privacy issues increasingly dominate the headlines. And for good reason: according to statistics cited in a recent Wall Street Journal article , cyber attacks --ranging from malicious software to denial of service attacks - increased 42% in 2012. The trend has only accelerated...

Assessing U.S. Public Company Cyber Risk Disclosure Practices

It has been nearly two years since the SEC Division of Corporate Finance issued its Disclosure Guidance on cybersecurity risks. During this period reporting companies have had the opportunity to incorporate disclosures in their reporting documents about the cybersecurity risks they face. To develop a...

Cybersecurity Disclosure Under Scrutiny

The threat of a cybersecurity breach is unfortunately one of the ongoing business risks companies face in the current operating environment. For that reason, corporate disclosures of cyber-breach related risks have been a priority of the SEC’s Division of Corporate Finance as well as the agency’s...

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...

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...

Data Breach-Related Derivative Lawsuit Filed against Home Depot Directors and Officers

In early 2014, when plaintiffs initiated data breach-related derivative lawsuits against the boards of Target Corp. ( here ) and Wyndham Worldwide ( here ), there was some speculation that these cases might be the first of what could become a wave of data-breach related D&O lawsuits. But then the...