Marriott Beats Stockholder Suit For Data Breach Damages

By Jeff Montgomery (October 6, 2021, 3:18 PM EDT) -- Stale claims and failure to show a complete lapse of board oversight have sunk a stockholder suit accusing Marriott Corp. directors of failing to protect the company from a massive data hack, uncovered after Marriott's acquisition of the Starwood Hotels chain, that exposed 500 million guests' personal information, Delaware's Chancery Court has ruled.

Vice Chancellor Lori W. Will, in a 53-page opinion issued late Tuesday, found that a derivative stockholder action, filed in 2019 and seeking damages on behalf of the company, arrived in the court after expiration of the three-year statute of limitations associated with many of the claims....

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