D&O insurance, cyber liability, and a (big) crack in the board’s armor

Property Casualty 360

PUBLISHED ON: May 2, 2018

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While the warning signs of cyber exposures for senior management have been lurking for a few years now, the proverbial proof in the pudding was provided recently when news broke that Yahoo settled shareholder class action litigation with an $80 million payment to the claimants. While this settlement sum alone will never go down as the largest, it is a sizeable departure from past resolutions of cyber securities suits — by a lot. In fact, the trajectory seen with cyber class action consumer claims may have similar (and ominous) parallels for shareholder cyber class actions.