Popular, Data Breach, Fiduciary Duty

Plaintiffs Request Court Approval of $8.7M Settlement in ERISA Class Action Cyberattack Lawsuit

Holland & Knight LLP on 4/2/2024

Multi-employer plan participants involved in an Employee Retirement Income Security Act of 1974 (ERISA) class action lawsuit against Horizon Actuarial Services LLC (Horizon), a national retirement services firm, have entered...more

Is Nothing Sacred? Cyberattacks May Impact Director and Officer Fiduciary Duties

Amundsen Davis LLC on 9/21/2023

MGM Resorts is the latest victim of a cyberattack occurring on September 10th, which has set back the gambling and leisure giant substantially, both in terms of business function and income. MGM is not alone. Household names...more

Dechert Cyber Bits - Issue 21

Dechert LLP on 9/30/2022

US Federal Appellate Court Issues Opinion on Proof of Injury in Data Breach Cases - On September 2, 2022, the U.S. Court of Appeals for the Third Circuit reinstated a class action lawsuit that had previously been dismissed...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

California State Court Upholds Exclusive Federal Forum-Selection Charter Provision for 1933 Act Suits

Goodwin on 9/24/2020

California State Court Upholds Exclusive Federal Forum-Selection Charter Provision for 1933 Act Suits; California District Court Dismisses Fraud-Related Claims Against AT&T; Third Circuit Holds Challenge to SEC’s Decision to...more

Retirement Plan Cybersecurity: Don't Assume Outsourced Administration Is Duty Free

Morgan Lewis on 12/2/2019

For years, there has been a persistent trend toward outsourcing retirement plan recordkeeping and other administrative responsibilities. Although historically more prevalent for defined contribution plans, this outsourcing...more

Georgia Supreme Court Clarifies There Is No Duty to Safeguard Personal Information from a Data Breach

Alston & Bird on 5/22/2019

The Georgia Supreme Court recently issued a decision holding that there is no duty to safeguard personal information from a data breach under Georgia law....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

“If at First You Don’t Succeed…” - Shareholders Keep Trying to Sue D&Os for Data Security Breaches

Locke Lord LLP on 5/24/2017

Several high-profile lawsuits have been filed in recent years by shareholders seeking to hold corporate officers and directors liable for damage resulting from data security breaches. For example, directors and officers at...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

Data Breach Risks for 401(k) and Retirement Plans

Jones Day on 4/18/2017

There has been a recent spike in attacks on 401(k) and retirement plans by cyber criminals. Some have been reported publicly, and we are aware of several nonpublic incidents as well....more

Cybersecurity Threats: What Retirement Plan Sponsors and Fiduciaries Need to Know – and Do

Poyner Spruill LLP on 3/8/2017

What is the Risk? The loss of employee personal information due to a cyber breach is an ever-increasing concern to all employers. After years of work to put into place protocols to comply with HIPAA’s requirements on...more

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

Bass, Berry & Sims PLC on 2/26/2017

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

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

Yahoo! Data Breach Results in Another Lawsuit Against Corporate Directors and Officers

Snell & Wilmer on 1/31/2017

A number of claims have been made against companies’ directors and officers alleging a breach of fiduciary duty for failing to adequately oversee data security programs. To date, the defendants’ oversight of the programs and...more

In Data Breach Suit, Federal Court Holds Banks To Higher Standard Than Customers

King & Spalding on 10/10/2016

On Wednesday, September 28, 2016, an Illinois federal district judge dismissed data breach-related claims brought by numerous banks against a grocer citing the sophistication of the business relationship between the banks and...more

Managing Cybersecurity Risk for Nonprofit Organizations: A Fiduciary Duty?

Patterson Belknap Webb & Tyler LLP on 5/16/2016

We live in an era of increasingly prevalent cybercrime, and nonprofits are in the crosshairs. Harvard University, Penn State University and two BlueCross BlueShield entities are just a few nonprofit organizations that...more

Legal Insights on the Ashley Madison Hack: Part I

Bilzin Sumberg on 8/27/2015

Internet commenters and legal analysts alike are buzzing about the Ashley Madison hack. The website -- which billed itself as a networking site for anyone who wanted to discretely arrange an extramarital affair -- has already...more

A Firewall for the Boardroom: Best Practices to Insulate Directors and Officers From Derivative Lawsuits and Related Regulatory...

Carlton Fields on 8/17/2015

Shortly after the massive 2013 Target data breach, shareholders filed four derivative lawsuits against the company’s directors and some of its officers (13 CARE 624, 3/20/15). The shareholders alleged that the defendants had...more

Honored in the Breach: Employer Action Items for an Insurer Data Breach

Ogletree, Deakins, Nash, Smoak & Stewart,... on 2/7/2015

This morning, Anthem Blue Cross and Blue Shield, one of the largest health insurers in the country, notified its policyholders, members, and business partners that it was recently the target of an external cyber attack that...more

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