From: Business Insurance
Target, Wyndham shareholder suits may start trend
When a company gets hit by a major data breach, the business, its leaders and its board members should be prepared for directors and officers liability related litigation that is certain to follow.
Shareholder lawsuits already filed against data breach victims Minneapolis-based Target Corp. and Parsippany, New Jersey-based Wyndham Worldwide Corp. (see story, page 29) exemplify what litigation experts say is likely when a major breach occurs, an issue that has increased worries among other businesses.
The Target and Wyndham litigations have prompted “hundreds of inquiries” from organizations worried whether their own D&O coverage addresses the issue, said Kevin Kalinich, Chicago-based global practice leader of cyber risk insurance at Aon Risk Solutions.
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