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Shareholders Can Sue Corporate Officers for Breach of Duty of Oversight in landmark Ruling — CISOs and CPOs, You Listening?
[UPDATE Feb 3, 2023] Will Class Action Lawsuits Force Companies to Get Serious About Cybersecurity;
"As if the production delays and reputational damage from such attacks aren’t bad enough, now executives must also consider the risk of winding up in court. A recent survey of in-house litigation leaders from global corporations found that cybersecurity and data protection issues will be top drivers of new disputes over the next few years.
Along with the climbing number of class action lawsuits is the soaring price tag of settlements. In 2020, one of the most high-profile and expensive cases—a cyberattack at credit-ratings company Equifax—resulted in a class action lawsuit that awarded a $700 million settlement, $425 million of which was earmarked to compensate consumers."
The article linked below (Read More) contains more details.
Shareholders are not going to sit back and watch their investments crumble when a cyber-incident results in financial losses due to negligence of the C-Suite Execs and BoD members. This is why it is imperative that Directors with fiduciary duties demand to see evidence that cybersecurity controls are in place and being implemented on an on-going basis and that "Tamper-proof evidence" is preserved and can be presented during a lawsuit. A Tamper-proof evidence locker is one of the key functions of the Software Assurance Guardian Community Trust Registry™ (SAG-CTR™). Tamper-proof evidence of software supply chain risk assessments is stored in the secure SAG-CTR™ Evidence Locker, which can be presented in a court case to aid the defense in any lawsuits brought by shareholders or others seeking to hold executives and BoD members personally liable for losses caused by a cyber-incident.
Shareholders Can Sue Corporate Officers for Breach of Duty of Oversight in landmark Ruling — CISOs and CPOs, You Listening?
In a landmark ruling, the Delaware Court of Chancery has recognized that corporate officers owe the company a legal duty of oversight, which has traditionally been an obligation solely of directors…
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