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On the 1st of December 23andMe, the direct Genetic testing firm, amended its 10th of October 8-K filed with the Securities and Exchange Commission (https://lnkd.in/e5yjj-xd).
The company updated its October filing to reflect the $1 million and $2 million onetime expenses in Qtr ending 31st December 2023, negatively impacting its financial results. Highlighting that the company is unable to predict the material effect of the attack on its financial condition for fiscal year ending March 2024. As multiple class actions have been filed, and their outcome cannot be predicted.
The report identifies the challenges that some companies will face, later this month, when they have to report material cyber incidents to the SEC. We discussed the effects of material SEC reporting earlier this year. In the case of 23andMe the longer term effects of legal actions could have a material effect on the companies performance (as could the effects on sales and customer retention).
https://lnkd.in/eFGjKUnn
The material effects of a cyber incident are complex. Affected organizations may find it difficult to focus on materiality when they are under cyber attack. Being prepared to have this conversation sooner rather than later maybe the order of the day.
Ted Dziekanowski Brian D. McCarthy Rachel V. Rose, JD, MBA
#cybersecurity #cyberriskmanagement #cyberattack #materiality
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