Facebook Moves to Dismiss Derivative Action Arising Out of Cambridge Analytica Scandal

On September 28, 2018, Facebook and its board of directors moved to dismiss a derivative action filed by Karen Sbriglio, a Facebook investor, alleging breach of a fiduciary duty.  The lawsuit, filed after revelations of the Cambridge Analytica scandal, claims the failure of Facebook’s leadership and governance in permitting the misappropriation of Facebook users’ data subjected it to public scrutiny, billions of dollars of lost market value, and significant fines and costs.  The basis of Facebook’s motion was that the company’s board, rather than…
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Congress Continues to Grapple with Election Interference

The Secure Elections Act may be back on the table once again. The bipartisan bill was introduced “to protect the administration of Federal elections against cybersecurity Threats.” In large part, the bill was intended to combat concerns that Russia and other state and private actors could exploit vulnerabilities in backend election systems, including voter registration databases, ballot creation systems, voting machine configuration systems, absentee processing and reporting and tabulation software. The bill’s sponsors hope to pass a version of the bill in time to…
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Sixth Circuit Uses Every Tool in the Box To Build Case for Coverage for Defrauded Policyholder

July 12, 2018, we reported on the Medidata decision handed down by the Second Circuit in which the court found coverage for a claim resulting from social engineering fraud. We suggested the ruling in Medidata lacks persuasive power due to its unusual factual circumstances and atypical policy language. The Sixth Circuit’s decision in American Tooling Center, Inc. v. Travelers Casualty & Surety Co. of America, No. 17-2014, 2018 WL 3404708 (6th Cir. July 13, 2018), will have more persuasive power, but due to…
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