The Securities and Exchange Commission (SEC) recently announced the withdrawal of several Biden-era regulations, including a proposed rule that would have required a broad range of platforms and financial intermediaries (such as broker-dealers, clearing agencies, national securities exchanges, and transfer agents) to adopt policies and procedures that address cybersecurity risks. The proposed rule also would […]
About Cara Peterman
SEC Corporation Finance Provides Additional Guidance on the Disclosure of Material Cybersecurity Incidents in Form 8-K
On June 24, 2024, the Division of Corporation Finance (“Corp Fin”) of the Securities and Exchange Commission (“SEC”) issued five new Compliance and Disclosure Interpretations (“C&DIs”) related to the disclosure of “material” cybersecurity incidents in Item 1.05 of Form 8-Ks. The C&DIs present hypothetical fact patterns related to ransomware attacks and insurance reimbursement for damages […]
SEC Settlement Suggests the Agency’s Attempt to Regulate Cybersecurity Controls
On June 18, 2024, the SEC announced a $2.125 million settlement with R.R. Donnelley & Sons Co. (“RRD”) related to the company’s 2021 ransomware attack (the “Incident”). The settlement, and the SEC’s accompanying cease-and-desist order (the “Order”), portend the agency’s continued and increasing oversight over registrants’ cybersecurity policies and practices. Background RRD is a global […]
SEC Corporation Finance Director Clarifies that Form 8-K Item 1.05 Disclosures Should be Limited to “Material” Cybersecurity Incidents
On May 22, 2024, the Director of the Division of Corporation Finance (“Corp Fin”) of the Securities and Exchange Commission (“SEC”) issued further guidance regarding disclosure of cybersecurity incidents on Form 8-K. The statement builds upon and provides additional clarity to companies seeking to comply with the SEC’s 2023 cybersecurity rules, which require public […]
Recent Updates in Two Closely-Watched Cybersecurity and Privacy-Related Securities Fraud Class Actions
Observers have been awaiting decisions in a number of cybersecurity and privacy securities fraud class actions with potentially important implications for corporate liability. Over the last several weeks, critical developments emerged in two such cases: the defendants’ motion to dismiss was granted in part and denied in part in In re Zoom Securities Litigation, and […]