Wendy’s Executives and Board File Motion to Dismiss

We previously reported that Wendy’s was hit with a putative class action shareholders’ derivative suit in December following its data breach in 2016. [view related post]. Late last week, the executives and Board of Wendy’s filed a Motion to Dismiss the case saying that the allegations in the Complaint were pure speculation, and that the Plaintiff failed to allege that the Board acted with gross negligence or reckless disregard of their duties or that they failed to monitor Wendy’s data security measures or disregarded security vulnerabilities.

The Motion to Dismiss further alleged that the Plaintiff failed to allege a viable duty of loyalty claim, and further failed to request that the Board investigate potential wrongdoing before filing the Complaint.

Finally, the Board stated that the allegation of bad faith was not viable since the alleged harm was caused by hackers.

[View source.]


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Robinson+Cole Data Privacy + Security Insider | Attorney Advertising

Written by:

more+
less-

Robinson+Cole Data Privacy + Security Insider on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×