SEC Continues To Target Cybersecurity Disclosures

Law360, New York (November 1, 2013, 12:51 PM EDT) -- Over the past two years, the U.S. Securities and Exchange Commission's Division of Corporation Finance (Corp Fin) has highlighted the importance of cybersecurity disclosures in filings with the SEC. Corp Fin's initiative appears likely to stay steady and even to escalate. Proper attention to cybersecurity disclosures can help a company avoid a comment letter on this issue from Corp Fin and decrease the likelihood of facing a securities class action or shareholder derivative action, or both, in the wake of a cyber attack or data breach.

Corp Fin's Disclosure Guidance

With cybersecurity garnering more attention, in October 2011 Corp Fin issued...

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