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.]
