Minding Your Business

Proskauer’s perspective on developments and trends in commercial litigation.

Tag Archives: cybersecurity

SolarWinds Government Data Breach Leads to Securities Action

The massive data breach of the United States Commerce and Treasury Departments that has roiled the federal government has resulted in federal securities litigation. On January 4, 2021, Plaintiff-Shareholder Timothy Bremer filed a class action complaint against SolarWinds and SolarWinds’ corporate executives in the United States District Court for the Western District of Texas. SolarWinds … Continue Reading

A Timely Reason to Review Procedures for Risk Assessments and Vendor Contracts in Light of the SolarWinds Attack

As reported last week, a state-sponsored hacker may have breached multiple U.S. government networks through a widely-used software product offered by SolarWinds. The compromised product helps organizations manage their networks, servers and networked devices. The product is not only used by government agencies, but is widely used in both the public and private sectors. Whether or … Continue Reading

Cybersecurity: A Guide to Preparing for and Responding to a Breach

A cyber breach can have serious legal, financial, and reputational consequences for a company, as described in our previous post. As such, cybersecurity threats must be treated as business risks, not just a potential IT problem. Senior management at a company should take the lead to ensure that the company is taking appropriate actions to … Continue Reading

Cybersecurity: Threats, Consequences, and the Regulatory Framework

In today’s world, cybersecurity breaches and threats are pervasive concerns for any business entity, without exception. Working from home arrangements due to COVID-19 constraints only magnify the risk and create further vulnerabilities for companies. Companies should be aware of (1) the key cyber threats they face, (2) the consequences of a breach, and (3) the … Continue Reading

Jeep Drivers’ Claims Come to a Screeching Halt: Hypothetical Hacking Threat Does Not Confer Article III Standing

On March 27, 2020, a five-year legal battle between three certified classes of Jeep Cherokee drivers and Fiat Chrysler came to a sudden end, when a federal judge in the Southern District of Illinois held that allegations that the vehicles were vulnerable to cyber-attacks did not give plaintiffs standing to sue under Article III of … Continue Reading

Ninth Circuit “Scraps” Old Construction of CFAA in Closely Watched LinkedIn Data Scraping Case

This past month, professional networking site LinkedIn Corp., was given more time to file a petition for certiorari challenging a Ninth Circuit finding that hiQ Labs Inc. (“hiQ”), a workforce data analytics startup, did not violate federal hacking laws by “scraping” LinkedIn member profiles without LinkedIn’s permission. Data scraping, or web scraping, is a method … Continue Reading

A Primer on the SHIELD Act: New York’s Move to Adopt More Stringent Data Security Requirements, Part II

What would companies need to do to comply with the law? The Stop Hacks and Improve Electronic Data Security (SHIELD) Act imposes requirements in two areas: cybersecurity and data breach notification. The cybersecurity provisions of the proposed SHIELD Act would require companies to adopt “reasonable safe-guards to protect the security, confidentiality and integrity” of private … Continue Reading
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