On September 26, 2018, the SEC brought its first ever enforcement action for violations of Regulation S-ID (the “Identity Theft Red Flags Rule”), 17 C.F.R. § 248.201, in addition to violations of Regulation S-P, 17 C.F.R. 30(a) (the “Safeguards Rule”). Regulation S-ID and Regulation S-P apply to SEC-registered broker-dealers, investment companies, and investment advisers, and […]
Security Breach
Colorado Enacts Expanded Data Breach Notification Law
Consistent with recent expansions to state data breach notification laws, Colorado recently enacted an expanded data privacy law that strengthens the state’s existing breach notification law and that requires policies and procedures concerning the protection and destruction of personal identifying information (“PII”). The law applies to any individual or commercial entity that maintains, owns, or […]
Georgia Court of Appeals Reaffirms Lack of Duty to Safeguard Personal Information
The Georgia Court of Appeals recently reaffirmed its prior conclusion that there is no duty to safeguard personal information under Georgia law. In McConnell v. Ga. Dep’t of Labor, — S.E.2d —-, 2018 WL 2173252 (Ga. App. May 11, 2018), the Court of Appeals addressed whether a plaintiff whose social security number and other personal […]
Seventh Circuit Affirms Dismissal of Schnuck Markets Data Breach Lawsuit
The United States Court of Appeals for the Seventh Circuit recently affirmed the dismissal of a putative class action brought by financial institutions against Schnuck Markets, Inc., following a data breach impacting Schnuck beginning late 2012. The plaintiffs attempted to assert claims of negligence, negligence per se, various contract claims, and violation of Illinois consumer […]
SEC Adopts Statement and Interpretive Guidance on Public Company Cybersecurity Disclosures
The Securities and Exchange Commission (SEC) issued a press release announcing its unanimous approval of a statement by SEC Chairman Jay Clayton and interpretive guidance (the “2018 Guidance”) to assist public companies in preparing disclosures about cybersecurity risks and incidents. This is the first interpretive guidance published by the full Commission on the topic of […]