LexisNexis® Legal Newsroom
Cyber Attacks: Are You Covered?

If your company collects credit cards, financial data or other personal information from consumers online, make sure you review your insurance portfolio to ensure your company is covered in the event of a "cyber attack." While virtually all companies have third-party comprehensive general...

David Bender Discusses Privacy and Data Protection

On this edition, David Bender, solo practitioner and Adjunct Professor at the University of Houston Law Center, discusses why privacy is so important, practical tips for dealing with a data security breach, federal statutes and state laws that come into play and emerging issues in data privacy. Mr...

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...

FCPA Enforcement as a Security Issue and Implications for the Compliance Practitioner

One of the things that has long puzzled me is what led to the significant rise in the enforcement of the Foreign Corrupt Practices Act (FCPA) beginning in the 2003-2004 time frame? One of the more consistent theories that I have heard proffered, by Dan Chapman, *** Cassin, Alexandra Wrage and others...

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...

What You Need to Know About NSA Mass Telephone Call Tracking

Excerpt: The flood of recent articles disclosing that the National Security Agency has engaged in a massive acquisition of information concerning the telephone communications of millions of Americans has shocked many. While sensationalizing this acquisition, most articles avoid discussing whether...

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...

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...

Top Treasury Official’s Speech Urges Adoption of Cyber Risk Insurance

Officials across a range of federal regulatory agencies have made it clear that promoting cyber security is an increasing priority. A critical part of the federal officials’ message has been the message that cyber security should be a corporate governance priority for company executives and corporate...

That Time the Entire Cyber Security Exposure Narrative Changed

The hack attack on Sony Pictures Entertainment was massive, and it had a devastating effect on the company. As detailed in the December 30, 2014 Wall Street Journal article entitled “Behind the Scenes at Sony as Hacking Crisis Unfolded,” ( here ), the hackers who attacked Sony’s systems...

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...

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...

State Net Capitol Journal: Utah Cyberattacks Up 10,000-Fold

A few years ago, government computer systems in Utah were sustaining 25,000 to 30,000 attempted cyber-attacks a day, which Utah Public Safety Commissioner Keith Squires thought was a lot at the time. But last week Squires told a legislative budget committee that last year there were spikes of 300 million...

Preparing for a Data Breach – What to Know About Breach Notification

by Kelsey S. Farbotko Data breaches are at the forefront of the news, and many companies, including those dominant in the health care industry, have found themselves front and center in the headlines. Although recent news stories have focused their attention on attacks on major, nationwide companies...

Thinking About the Data Breach Securities Class Action Lawsuits Yet to Come

There has been extensive litigation filed in the wake of the many high-profile data breaches over the last several years, but by and large the lawsuits have been filed on behalf of consumers or employees. Along the way, there have also been lawsuits filed against the directors and officers of the companies...

Taking Control of Cybersecurity: A Practical Guide for Officers and Directors

Major cybersecurity attacks of increased sophistication — and calculated to maximize the reputational and financial damage caused to the corporate targets — are now commonplace. These attacks have catapulted cybersecurity to a top priority for senior executives and board members. To help...

Even Small Businesses Need to Pay Attention to Data Security

by Devin J. Chwastyk When people think about data breaches, corporate giants like Target, Home Depot and Michael’s spring to mind. But even small businesses holding personal information can face costly consequences if a breach occurs. In the past, cases only proceeded in the courts if plaintiffs...

Third Circuit: FTC May Pursue Data Breach Enforcement Action Against Wyndham Worldwide

On August 24, 2015, in a ruling that was much-anticipated because of its potential implications for the regulatory liability exposures of companies that have been hit with data breaches, the Third Circuit affirmed the authority of the Federal Trade Commission to pursue an enforcement action against Wyndham...

When Data Hacks Lead to D&O Lawsuits, Actual and Threatened

Many observers, including even this blog, have speculated whether the rising wave of data breaches and cyber security attacks will result in litigation against the directors and officers of the affected companies. Indeed, in 2014, there were two sets of lawsuits filed against the boards of companies...

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...

Book Review: Cyber Risks, Social Media and Insurance

We live in a world in which rapidly shifting technologies and communications modalities have changed the way we interact and conduct business. These new media and means of interaction have introduced innumerable benefits and efficiencies. Unfortunately, these new alternatives have down sides; among other...

Are You Ready? Five Key Cybersecurity Battlefronts.

“No foreign nation, no hacker, should be able to shut down our networks, steal our trade secrets, or invade the privacy of American families. . . . I urge this Congress to finally pass the legislation we need to better meet the evolving threat of cyber attacks, combat identity theft, and protect...