News & Analysis as of

Shareholder Litigation Board of Directors Cybersecurity

Woodruff Sawyer

Misinformation as a Material Risk: Governance, Response, and Insurance Considerations

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The spread of misinformation goes beyond public relations and poses a real risk to business operations. Whether it's inaccurate information shared on social media, mischaracterizations in mainstream news or podcasts, or...more

Kramer Levin Naftalis & Frankel LLP

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

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

Pietragallo Gordon Alfano Bosick & Raspanti,...

Cybersecurity: Board of Director Litigation Risk

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

Skadden, Arps, Slate, Meagher & Flom LLP

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

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

Benesch

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

Benesch on

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

Oberheiden P.C.

10 Reasons to Hire a Corporate Private Investigator

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Corporate investigations can serve a variety of different purposes. From uncovering accounting fraud to responding to cybersecurity breaches and preparing for litigation, there are various circumstances in which corporate...more

White and Williams LLP

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

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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

Robinson+Cole Data Privacy + Security Insider

Home Depot Agrees to Settle Data Breach Shareholders’ Suit

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

Bass, Berry & Sims PLC

Bass, Berry & Sims Releases Securities & Shareholder Litigation 2017: A Look Ahead

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Bass, Berry & Sims PLC announces the release of its annual "Securities & Shareholder Litigation 2017: A Look Ahead," a high-level report that covers recent developments and offers best practices for the year ahead. The newly...more

BakerHostetler

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

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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

Robinson+Cole Data Privacy + Security Insider

Shareholders’ Derivative Suit Against Home Depot Dismissed

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

Porter Hedges LLP

Business Litigation Alert: "Is Your Board of Directors Providing Sufficient Oversight for Cyber Attacks?"

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Last month, we discussed the recent federal court decision that allows whistleblowers to sue board members directly for retaliation. Now, it seems as though board members are assuming a bigger role in managing another...more

Bracewell LLP

Lessons For Corporate Directors From The Wyndham Data Breach Derivative Action

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On October 20, 2014, Wyndham Worldwide Corporation won dismissal of a shareholder derivative suit seeking damages arising out of three data breaches that occurred between 2008 and 2010. Dennis Palkon, et al. v. Stephen P....more

Troutman Pepper

Wyndham Decision Provides Guidance to Corporate Directors and Officers in Responding to a Data Breach

Troutman Pepper on

U.S. District Judge Stanley R. Chesler of the District of New Jersey recently provided much needed guidance to directors and officers on their duties and responsibilities with regard to cybersecurity. In Palkon v. Holmes, et...more

Mintz

Director Liability for Cybersecurity Risks

Mintz on

If a corporation is the target of a cyberattack resulting in a data breach, its board may be the target of a shareholder derivative action claiming breach of fiduciary duty. A recent example is Palkon v. Holmes, No....more

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