The recent class action settlement, SEC Wells order and the enclosed Delaware Court dismissal of a Caremark claim. ‘In the context of a Caremark

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The recent class action settlement, SEC Wells order and the enclosed Delaware Court dismissal of a Caremark claim.

‘In the context of a Caremark claim, pleading such bad faith typically requires allegations establishing that the directors either (1) utterly failed to establish any system for board-level reporting of risk or (2) failed to act in the face of known “red flags.”’

One wonders how directors of a company cannot be aware of cyberattacks, their impact and their duty of care when the SEC alone has raised cyber as a material board risk several times. I wait to see what eminates from the SEC Wells notice?

Rachel V. Rose, JD, MBA
Ted Dziekanowski

#cybersecurity #cyberriskmanagement #cyberlaw #theaugustagroup

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