Cybersecurity Event-Driven Securities Litigation Has Arrived

Law360 (January 12, 2021, 5:59 PM EST) -- In August, we wrote about the cautionary tale of the New York State Department of Financial Services filing of formal charges under Part 500, against First American Title Insurance Company.[1] In the July filing, DFS alleged that First American failed to address a vulnerability on its public website that exposed tens of millions of documents containing confidential, sensitive personal information to the world.[2]

On Thanksgiving Eve, shareholders of First American filed a derivative suit against the company and its directors and officers, alleging that they breached their fiduciary duties to shareholders in allowing a security breach to expose more than 885...

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