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Expert Analysis

D&O Liability For Data Breaches After Palkon V. Holmes

Law360, New York (November 3, 2014, 10:34 AM EST) -- On Oct. 20, 2014, a federal district court in New Jersey dismissed with prejudice a shareholder derivative suit, Palkon v. Holmes,[1] that sought damages from directors and officers of Wyndham Worldwide Corp. for a series of data breaches. Palkon is the first decision in a shareholder derivative action against directors arising out of a data breach. The decision illustrates some of the steps that directors can take to reduce their risk of cyber-related liability....

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