Impact of Data Breach: Leadership Resignations and Corporate Liability

Data breach incidents not only impact an organization’s reputation and profits, but also can undermine confidence in its leadership, as evidenced by recent C-Suite resignations at Target.

What measures has your company taken to prevent a data breach? How prepared is your company to respond to hacking incidents or accidental data loss?

In the wake of recent massive data breaches, there is a growing trend of derivative and securities fraud lawsuits seeking to impose personal liability on the board members and executive management teams of affected companies for breach of their fiduciary duties by failing to protect their companies from data breach incidents or to respond adequately to limit the impact when a breach occurs.

To assist our clients, Squire Sanders has developed a four-point Data Breach Preparedness and Response Program in this increasingly important area. We have in place a global team of lawyers with expertise in Data Protection & Privacy, Corporate and Securities, Litigation and Labor & Employment, as well as sector-specific regulatory areas, to:

• assist our clients in identifying and assessing their risks and vulnerabilities;
• implement internal policies and procedures and best practices, as they evolve over time;
• train staff to minimize the risk of and to respond to a data breach;
• guide clients through the process of interpreting the scope and application of data breach laws in multiple jurisdictions that may be applicable and assist them on notification obligations and risk mitigation when data breach incidents have occurred; and
• defend clients in legal and regulatory proceedings arising from data breach incidents.

If you would like more information about how we can assist you in implementing a data breach preparedness and response program tailored to the needs of your organization, please do not hesitate to contact us.