For many years, the plaintiffs’ bar has been very active in bringing class action litigation against public companies immediately after the announcement of adverse news concerning a company, which many times triggers a decline in the company’s stock price. Since at least the Yahoo data breach in 2013 (which led to a settled SEC enforcement action and a recently-settled class action lawsuit), plaintiffs’ lawyers have been increasingly drawn to using data breach problems to allege misconduct or fraud by corporate officials charged with keeping the securities markets apprised of all material information about a public company.
Continue Reading Federal Court Dismisses Federal Securities Class Action Based on Data Breach
Yahoo Settles Claims by SEC regarding 2014 Data Breach
By Edward B. Whittemore on
Posted in Data Breach, Data Security
Yesterday, the Securities and Exchange Commission (SEC) announced an important administrative settlement with Altaba (Yahoo) related to the company’s failure to disclose a major security breach to its users and investors. Under the terms of the settlement, the company agreed to pay a $35 million civil money penalty to settle charges that it misled investors by failing to disclose one of the world’s largest data breaches in which hackers stole personal data relating to hundreds of millions of user accounts.
Continue Reading Yahoo Settles Claims by SEC regarding 2014 Data Breach
SEC Issues New Cybersecurity Disclosure Guidance for Public Companies
By Edward B. Whittemore on
Posted in Cybersecurity
On February 21, 2018, the SEC approved new interpretive guidance to assist public companies in preparing their disclosures about cybersecurity risks and incidents. The Release builds upon and expands on the SEC’s 2011 staff guidance on cybersecurity matters.
Continue Reading SEC Issues New Cybersecurity Disclosure Guidance for Public Companies