Key Post-Breach Shareholder Litigation, Disclosure and Insurance Selection Considerations

Publicly traded companies face an array of cyber-related decisions beyond how to best secure their data – chief among them are when and to whom to disclose cyber risks, how to handle shareholder litigation that follows a breach and what type of insurance policy to choose to mitigate post-breach costs. At a recent seminar hosted by the Practising Law Institute, speakers from Labaton Sucharow, BitSight Technologies and Beecher Carlson addressed considerations for making disclosures to investors both prior to and following data breaches, elements of a securities fraud case and the scope of possible insurance coverage to mitigate losses following a breach. See also “Proactive Steps to Protect Your Company in Anticipation of Future Data Security Litigation” Part One (Nov. 25, 2015); Part Two (Dec. 9, 2015).

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