Cybersecurity breaches resulting in rise in securities class actions

FRT Admin
Site administrator
April 20, 2015

Cyber_Security

An increase in data breaches in recent years has forced companies to beef up their cybersecurity efforts. Cybersecurity breaches, in which client data is exposed, are resulting in a trickle of securities class action cases, although experts expect that trend to increase. As companies make improvements to their cybersecurity efforts, they often release statements about their security updates. If those companies are breached, they can become subject to securities class action litigation due to releasing misleading information. A deciding factor as to whether there is a strong correlation between data breaches and an increase in securities class actions will be whether data breaches lead to major drops in stock prices for the affected company. The SEC is also focused on cybersecurity disclosure and will start taking action to police disclosure by companies that are not forced to disclose their cybersecurity policies under law.

FRT will continue to follow the growth trend of cybersecurity class action litigation and the future will tell if this is a lasting trend.

 

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.