Shortly after Marriott International’s November 2018 announcement that it had uncovered a data breach in the guest registration system of Starwood (which Marriott had acquired two years earlier), the company was hit with a raft of litigation, including both securities class action lawsuits and shareholder derivative lawsuits. In twin June 11, 2021 opinions, the federal district judge presiding over the various Marriott data breach-related lawsuits granted the defendants’ motions to dismiss both the consolidated securities suits and the consolidated derivative suits. The lengthy and detailed opinions make for interesting reading and underscore the challenge plaintiffs face in trying to turn a cybersecurity incident into a D&O claim. The opinion in the securities suit can be found here and the opinion in the derivative suit can be found here.
Source: Marriott Data Breach-Related Securities and Derivative Suits Both Dismissed | The D&O Diary