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Potential Board Liability for Cybersecurity Failures Under Caremark Law

Posted on February 23, 2022 by Dissent

Having trouble getting support for security efforts? Maybe show this one to the board of directors.

Leah Rizkallah reports:

Cybersecurity is now among the most critical risk-areas for companies across industries, and boards of directors must be vigilant in overseeing their companies’ cybersecurity efforts. Failing to do so not only increases risks for the company, but may also expose board members to personal liability. Developments in Delaware’s Caremark doctrine for breaches of fiduciary duty have paved a narrow path for plaintiffs to hold directors liable for failing to adequately address and oversee their company’s cybersecurity and data privacy risks.

Read more at CPO Magazine.

Related posts:

  • The President Ordered a Board to Probe a Massive Russian Cyberattack. It Never Did.
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