‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInCybersecurity-Related Securities Suit Dismissed | The D&O Diary
In an interesting development, the U.S. District Court Judge overseeing the cybersecurity-related securities class action lawsuit pending against title insurance company First American Financial Corp. has granted the defendants’ motion to dismiss. The dismissal in the case is interesting because the company had in June 2021 agreed with the SEC to enter a cease-and-desist order […]
Key Takeaways From a Second Summer Blitzkrieg of SEC Cybersecurity Enforcement | LinkedIn
The SEC just fired its second summer cybersecurity enforcement salvo in the span of two weeks, turning its enforcement torrent from cyber-related disclosure failures at public companies, to cybersecurity failures at SEC-registered financial firms. In its first salvo, fired on August 16, 2021, the SEC went ballistic. Without alleging fraud, without charging any individuals and, in […]
SEC Announces Three Actions Charging Deficient Cybersecurity Procedures
The Securities and Exchange Commission today sanctioned eight firms in three actions for failures in their cybersecurity policies and procedures that resulted in email account takeovers exposing the personal information of thousands of customers and clients at each firm. The eight firms, which have agreed to settle the charges, are: Cetera Advisor Networks LLC, Cetera […]
KEY TAKEAWAYS FROM TWO RECENT SEC CYBER-DISCLOSURE ENFORCEMENT ACTIONS | LinkedIn
The SEC has just stepped up its enforcement efforts for cyber-related disclosure failures by public companies — bigtime. To date, given the dearth of SEC enforcement actions charging cyber-related disclosure failures, commentators typically cite the SEC enforcement action against Altaba, formerly known as Yahoo!, as the most pertinent precedent and guide for heedful corporate disclosure counsel. But with […]
SEC Charges Pearson plc for Misleading Investors About Cyber Breach
The Securities and Exchange Commission today announced that Pearson plc, a London-based public company that provides educational publishing and other services to schools and universities, agreed to pay $1 million to settle charges that it misled investors about a 2018 cyber intrusion involving the theft of millions of student records, including dates of births and […]
The SEC’s Continued Focus on Cybersecurity Enforcement | Kramer Levin Naftalis & Frankel LLP
On June 14, the Securities and Exchange Commission (SEC) announced a $490,000 settlement with the real estate services provider First American Financial Corporation (First American) for violations of disclosure controls and procedures related to cybersecurity vulnerabilities. Notably, the SEC’s case against First American did not specifically focus on a cyberattack or allege an underlying securities […]
SEC Charges Issuer With Cybersecurity Disclosure Controls Failures
According to the SEC’s order, on the morning of May 24, 2019, a cybersecurity journalist notified First American of a vulnerability with its application for sharing document images that exposed over 800 million images dating back to 2003, including images containing sensitive personal data such as social security numbers and financial information. In response, according […]
The Cybersecurity 202: Companies are doing a terrible job of reporting cybersecurity risks to investors, a new study says – The Washington Post
Many publicly traded companies are leaving investors in the dark on important cybersecurity risks, a new report suggests. That includes vulnerabilities like the ones that allowed Russian hackers to exploit SolarWinds and other firms to infiltrate nine federal agencies and at least 100 companies. The study’s authors found that many publicly traded companies fail to provide […]
Private Equity and Cybersecurity: A Guide to Preparing for and Responding to a Breach | Proskauer – The Capital Commitment – JDSupra
A cyber breach can have serious legal, financial, and reputational consequences for a fund sponsor, as described in our previous post. As such, cybersecurity threats must be treated as business risks, not just a potential IT problem. Senior management at fund sponsors should take the lead to ensure that the sponsor is taking appropriate actions […]
SEC Awards Booz Allen $113M New Cybersecurity Contract | Business Wire
On December 12, 2019, the Securities and Exchange Commission (SEC) awarded Booz Allen Hamilton (NYSE: BAH) an extensive 10-year contract, totaling $113 million, to deliver modernized cyber defense operations support. With this new contract, Booz Allen will become the SEC’s major provider of cybersecurity services. Booz Allen was selected for its clear understanding of the […]