Corporate Governance » Shareholder Cyber-Lawsuit Vs Board Hits Wall

Shareholder Cyber-Lawsuit Vs Board Hits Wall

October 23, 2014

In the U.S. District Court for the District of New Jersey, a judge granted the motion to dismiss a derivative lawsuit from a Wyndham Worldwide Corporation shareholder. This case has received a lot of attention, as it may signal a potential new area of liability exposure for directors and officers, says Kevin LaCroix in his D&O Diary. But he goes on to suggest the signal is not particularly strong. “Cyber risk may yet emerge as a significant area of D&O liability exposure,” he writes. “But Judge Chesler’s opinion is a reminder of just how difficult it is for plaintiffs to survive the initial pleading hurdles in derivative lawsuits like the one the plaintiff filed here.”

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