Law360 has published expert analysis of the Palkon v. Holmes case and what it means for director liability in data breach-related cases, written by Mintz Levin's David Barres (registration required).
A federal district court in New Jersey recently dismissed with prejudice a shareholder derivative suit, Palkon v. Holmes, that sought damages from directors and officers of Wyndham Worldwide Corp. for a series of data breaches. The decision illustrates some of the steps that directors can take to reduce their risk of cyber-related liability, says David Barres of Mintz Levin Cohn Ferris Glovsky and Popeo PC.
REMINDER: Protecting Directors from Liability for Cybersecurity Risks Webinar Tomorrow
And David (along with Dom Picca) will be discussing how directors can best protect themselves from this shareholder litigation and other cyber-related risks in an upcoming webinar,Protecting Directors from Liability for Cybersecurity Risks, offered through the West LegalEdcenter. The webinar will be held TOMORROW, November 5, 2014, at 12:00 noon EST. Barres and Picca will provide an overview of cybersecurity litigation, review the governing principles of Delaware fiduciary law, review sample cases (including Palkon), and offer practical advice on how to minimize a board’s potential liability arising out of data breaches.