SEC, Shareholders Take On A Growing Cybersecurity Oversight Role

Protecting against data breaches, hacks and cyber threats is an unwelcome but necessary reality for businesses today. In addition to vigilantly guarding against attacks, companies must consider the possibilities of litigation and investigations that can stem as a result of such events. State attorneys general, the Federal Trade Commission, the Department of Health and Human Services Office of Civil Rights, and other federal and state agencies have each investigated companies that have been the victim of a cyberattack. Now, businesses must also take into account whether failing to prepare for cyber threats exposes them to investigations or enforcement actions undertaken by the Securities and Exchange Commission or to litigation brought by shareholders.