Exercise backdating

For some time now, many commentators (including me) have been predicting that as a result of rising numbers of companies experiencing date breaches that there would be a resulting wave of D&O lawsuits.Indeed, there have been a small number of high profile data security-related D&O lawsuits filed.

The plaintiffs opposed the motion arguing that the demand was excused because it would have been futile.However, the fact is that most data breach disclosures have not been accompanied by a significant share price decline, making the securities class action lawsuit alternative unattractive (or even arguably unavailable).The upshot of all of this is that there has not been a significant data breach-related derivative lawsuit (or other D&O claim) filed for some time now.With respect to the plaintiffs allegations that the defendants insufficient reaction to cybersecurity weaknesses cause “waste” to corporate assets, Judge Thrash said that in order to establish demand futility the plaintiffs must raise a reasonable doubt that the “challenged transaction was …the product of a valid exercise of business judgment.” In concluding that the plaintiffs had failed to satisfy this requirement, Judge Thrash noted that “with hindsight, it is easy to see that the Board’s decision to upgrade Home Depot’s security at a leisurely pace was an unfortunate one.

Search for exercise backdating:

exercise backdating-11exercise backdating-57exercise backdating-85

While the current change in the Presidential administration raises a great deal of uncertainty about what might be ahead, the likelihood is that activity of regulators in this area will increase and not decrease; we likely will continue to see additional regulators becoming active in this space as well.

Leave a Reply

Your email address will not be published. Required fields are marked *

One thought on “exercise backdating”