Investors Could Find Litigation Success With Equifax Breach
By Carmen Germaine
Sept. 11, 2017
On the other hand, experts said that if it’s true the executives weren’t aware of the breach, shareholders could claim in a derivative suit that Equifax lacked sufficient internal controls. Colombo noted that companies have a duty to put in place systems of controls and reporting, designed to prevent, detect and report up situations like a data breach.
“To the extent that they don’t, and to the extent that the CFO’s going to claim, ‘I didn’t know this happened’ even though it happened four days earlier, that would appear to suggest that their systems aren’t that robust,” Colombo said.
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