Tuesday, August 7, 2018
We talk a lot about the growing need for officers and directors to be more hands-on with cybersecurity. We recently came across an interesting case from a few years ago that proves this point. As the article below discusses, in the Wyndham Worldwide case, a shareholder filed suit to compel Wyndham to sue its Officers and Directors for breach of their fiduciary duty. The shareholder lost very early on because Wyndham was able to demonstrate that the Officers and Directors had been on top of cybersecurity issues, including being proactive in addressing shortcomings as recommended by different vendors, and discussing cybersecurity issues at least fourteen times in four years, with the audit committee discussing these topics an additional sixteen times in that same timeframe.
Fathom Cyber gives your organization’s officers, directors, and other executives powerful information to help withstand such a suit.
https://www.dandodiary.com/2014/11/articles/cyber-liability/guest-post-cyber-security-indeed-derivative-action-dismissed-where-board-proactively-addressed-cyber-risks-and-exposures/