Ken Yeadon Discusses the SEC's Latest Cybersecurity Disclosure Guidance
Hinshaw partner Ken Yeadon—former Assistant U.S. Attorney and a former U.S. Securities and Exchange Commission (SEC) enforcement attorney—spoke with Law360 about the SEC's recent cybersecurity disclosure guidance in an article titled "SEC Solidifies Liability Risks with Cybersecurity Guidance." Although the guidance largely tracked a previously-released staff version, this guidance carries more weight because it comes directly from the commissioners and also strongly endorsed "established cyber reporting principles" as well as a focus on issues such as insider trading.
Yeadon notes that a company's failure to report cybersecurity risks and events with specificity in a timely manner will likely raise a red flag with the SEC. "The guidance is pretty clear that if there's a cyber event that's material to your business, an officer, director or anyone else that has knowledge of it should be on notice that their trading is going to be investigated if it's made during that time period," Yeadon said.
Read "SEC Solidifies Liability Risks with Cybersecurity Guidance," on the Law360 website (subscription required)