Bass, Berry & Sims attorney Joe Crace provided insight for an article in Law360 on the potential for shareholder class actions following a company’s data breach. Thus far, investors have not been particularly successful at bringing data breach-related shareholder litigation, but given the size and scope of the Equifax data breach, most expect shareholder plaintiffs to try again.
The article discusses the timing of the Equifax data breach disclosure to investors, and other issues that may be relevant to a potential securities lawsuit. “A company will want to have a good understanding of what actually happened before releasing potentially inaccurate information to the market,” said Joe. “So there’s a bit of a delicate balance between acting too quickly or acting too slowly.”
The full article, “Investors Could Find Litigation Success With Equifax Breach,” was published by Law360 on September 11, 2017, and is available online.