News & Analysis as of September 21, 2024

Cybersecurity › Derivative Suit

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Follow this channel for advisories on one of the biggest threats to businesses today. Read a morning brief of fresh guidance and commentary by leading lawyers on security, privacy, risk... more +

Follow this channel for advisories on one of the biggest threats to businesses today. Read a morning brief of fresh guidance and commentary by leading lawyers on security, privacy, risk management, global regulations, data protection, leaks, hacking, cyber insurance, compliance, HIPAA, and every other aspect of cybersecurity of import to corporate readers right now. less -

2023 securities, shareholder, and M&A litigation outlook - April 2023

Hogan Lovells on 4/25/2023

In this past year, we saw an uptick in in-person court proceedings as the effects of the pandemic subsided, a decrease in pandemic-related litigation, and a return to many of the core issues facing Delaware companies...more

Cybersecurity in the Boardroom: ‘Caremark’ Liability for Boards’ Failure to Oversee Cybersecurity

Kramer Levin Naftalis & Frankel LLP on 3/14/2023

In an era of increasing cyberattacks by varying threat actors, the board's oversight of cybersecurity risks remains a key responsibility. In two recent cases, the Delaware Court of Chancery (Chancery Court) dismissed Caremark...more

Cybersecurity: Board of Director Litigation Risk

Pietragallo Gordon Alfano Bosick & Raspanti,... on 2/23/2022

Takeaway: With the surge of data and cybersecurity breaches, corporate directors and officers have become targets for shareholder derivative lawsuits. Fortunately, there are procedural measures that directors and officers can...more

Firemen’s Ret. Sys. of St. Louis v. Sorenson: No Caremark liability for data breach - Quarterly Corporate / M&A Decisions update...

Hogan Lovells on 1/25/2022

In Firemen’s Ret. Sys. of St. Louis v. Sorenson, C.A. No. 2019-0965-LWW (Del. Ch. Oct. 5, 2021), the Delaware Court of Chancery dismissed a derivative lawsuit against Marriott executives and directors for breaches of the duty...more

Looking Ahead: Expert Insights into the 2022 D&O Market

Woodruff Sawyer on 1/20/2022

As predicted in last year’s Looking Ahead, D&O insurance rates continued to rise in 2021. However, there are early signs that the market is in transition and that some relief may be on the way. As documented in this year’s...more

The Risk of Overlooking Oversight: Recent Caremark Decisions From the Court of Chancery Indicate Closer Judicial Scrutiny and...

Skadden, Arps, Slate, Meagher & Flom LLP on 12/17/2021

In 1996, the Delaware Court of Chancery issued its seminal decision in In re Caremark International Inc. Derivative Litigation, establishing the conditions for director oversight liability under Delaware law. Adopted a decade...more

Shareholders Seek to Hold Current and Former SolarWinds Officials Liable for Massive 2020 Security Breach

Benesch on 12/7/2021

Investors filed a derivative suit claiming that the company knew about, and failed to mitigate known, existing cybersecurity risks and shortfalls prior to the security breach. In early November, pension funds and...more

Shareholder Seeks Second Look At Company Data Security Practices

Proskauer - Minding Your Business on 12/9/2020

On November 25, 2020, a shareholder of First American Financial Corporation (“First American”) filed suit against the company and its officers and directors over a massive data security breach that exposed hundreds of...more

What Now? Addressing A Crisis Of Complexity Resulting From A Hardening D&O Insurance Market

Robins Kaplan LLP on 4/24/2020

Following several quarters of double-digit rate hikes and increased retentions, the hardening marketing for directors and officers (D&O) liability insurance is adjusting to a “new normal” of increasing exposures, claims, and...more

Hypothetical Risk Factors Pose a Real Risk

Proskauer Rose LLP on 7/30/2019

On July 24, 2019, the Securities and Exchange Commission (the "SEC") announced charges against Facebook Inc. ("Facebook") for making misleading statements and risk factor disclosures regarding the misuse of Facebook user data...more

Privacy and Data Security Client Alert | February 2019

Shook, Hardy & Bacon L.L.P. on 2/7/2019

Google Receives Record GDPR Fine - Marking the first major penalty against a U.S. tech company under the General Data Protection Regulation (GDPR), the French data-protection authority, CNIL, has fined Google a record $57...more

The $29 Million Yahoo Derivative Data Breach Settlement: What Next?

White and Williams LLP on 1/30/2019

On January 4, 2019 a federal district court in California approved a $29 million settlement in a shareholder derivative lawsuit against former Yahoo directors and officers regarding high-profile data breaches at Yahoo between...more

Directors and Officers Settle Over Yahoo Hack: A New Chapter in Derivative Litigation?

Patterson Belknap Webb & Tyler LLP on 1/10/2019

Yesterday, a Superior Court judge in Santa Clara, California approved what is believed to be the first monetary award to a company in a data breach-related derivative lawsuit....more

Even as Data Breaches Continue to Increase, Obstacles Remain for Litigants Seeking to Pursue Securities Fraud and Derivative Suits

Troutman Pepper on 4/2/2018

Despite focused media coverage and a steady increase in the number of data breaches involving public companies, there has not been a corresponding increase in shareholder securities fraud and shareholder derivative claims...more

The Next Big Thing: Data Breach Securities Class Action Litigation

Patterson Belknap Webb & Tyler LLP on 2/21/2018

Shareholders may have found a new hook for data security lawsuits. Over the past year, plaintiffs have filed nine federal class action securities fraud lawsuits against public companies after data security incidents,...more

Cyberattacks Are the New Norm - How to respond and get insurance recovery for government investigations.

Pillsbury Winthrop Shaw Pittman LLP on 9/22/2017

Takeaways - Companies that suffer cyberattacks can expect not sympathy but scrutiny from legal authorities. - D&O insurance can cover not only litigation but also investigation costs. - Strategic negotiation of...more

Home Depot Agrees to Settle Data Breach Shareholders’ Suit

Robinson+Cole Data Privacy + Security Insider on 5/3/2017

In a surprise move late last week, Home Depot has agreed to settle a shareholders derivative suit filed against current and former members of the Board of Directors and the Chief Executive Officer and Chief Information...more

Appeal in Home Depot Data Breach Derivative Action Results in Settlement of Corporate Governance Claims

Mintz - Privacy & Cybersecurity Viewpoints on 5/2/2017

Snatching victory of a sort from the jaws of defeat, shareholders who brought a derivative action alleging that the 2014 Home Depot data breach resulted from officers’ and directors’ breaches of fiduciary duties have reached...more

Yahoo Data Breach Update: A Third Notification + Shareholders Sue

Robinson+Cole Data Privacy + Security Insider on 2/24/2017

Last week, Yahoo issued another warning to some of its customers telling them that their personal information may have been compromised in a data breach. This is the third notification to Yahoo users that their information...more

Home Depot Evades Shareholder’s Derivative Suit for 2014 Data Breach

BakerHostetler on 12/21/2016

Public companies that are proactively working to mitigate “cyber” risks and prepare to respond to potential incidents frequently ask whether a “breach” will lead to litigation, loss of customers, stock price decline, and...more

Home Depot Data Breach Derivative Suit Sent Home

Proskauer - Minding Your Business on 12/16/2016

Judge Thomas W. Thrash Jr. of the U.S. District Court of Georgia permanently shelved a derivative suit brought by shareholders of Home Depot. Home Depot is a multinational home improvement retailer. In September, 2014,...more

Shareholders’ Derivative Suit Against Home Depot Dismissed

Robinson+Cole Data Privacy + Security Insider on 12/12/2016

On November 30, 2016, The Home Depot, Inc. (Home Depot) got a victory in the shareholders’ derivative suit filed against it for its alleged failure to institute necessary controls to secure its data relating to its 2014...more

Home Depot Cyber Derivative Action Shuttered: Another Data-Breach Derivative Suit Fails to Clear Fundamental Corporate Law Hurdles

Carlton Fields on 12/7/2016

The recent dismissal of a Home Depot derivative action ends a string of high-profile derivative suits stemming from large-scale corporate data breaches. On November 30, the Northern District of Georgia dismissed a shareholder...more

A Failed Strategy: Another Derivative Action In A Data Breach Case Goes Down To Defeat

Mintz - Privacy & Cybersecurity Viewpoints on 12/2/2016

Dismissal Of Home Depot Derivative Action Extends Shareholder Losing Streak An attempt to impose liability on corporate officers and directors for data breach-related losses has once again failed. On November 30,...more

"Privacy & Cybersecurity Update - July 2016"

Skadden, Arps, Slate, Meagher & Flom LLP on 8/3/2016

In this edition of our Privacy & Cybersecurity Update, we discuss the revised Privacy Shield and what companies should be doing to prepare for the new program, the FTC's reinstatement of its LabMD case, the European...more

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Cybersecurity › Derivative Suit

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