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Client Alert – Recent Dismissal Of Derivative Suit Demonstrates That Directors Must Focus Their Attention On Cybersecurity

With the increasing sophistication and variety of cyber-attacks, directors of companiesholding sensitive customer information or trade secrets cannot be complacent about cybersecurity risk management and compliance. A recent decision in U.S. District Courtdismissing a shareholder derivative suit emphasizes that the board should be involved, not justin responding to data breaches after they occur, but also in developing prophylactic measuresand evaluating the companies’ status of compliance with privacy and data securityregulations. More…