Directors Must Heed SEC On Cybersecurity And Social Media

Law360 (May 20, 2019, 3:24 PM EDT) -- In recent years, the U.S. Securities and Exchange Commission has demonstrated an increased willingness to investigate and enforce violations of the federal securities laws arising from cybersecurity breaches and information disseminated through a company’s social media outlets, including by bringing actions directly against individual directors and officers.

SEC guidance and enforcement actions make clear that the SEC expects companies to take certain precautions with respect to avoiding and remediating cybersecurity breaches, and that the SEC now views information disclosed via social media as a formal disclosure made by a company, which in turn will be subject to the SEC’s reporting requirements...

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