Public companies now have a pathway to request a delay in their cybersecurity incident disclosure to the U.S. Securities and Exchange Commission (“SEC”). On December 6, 2023, the Federal Bureau of Investigation (“FBI”) Cyber Division published the “Cyber Victim Requests to Delay Securities and Exchange Commission Public Disclosure Policy Notice” (the “Policy Notice”) in response to the SEC’s finalized disclosure rules (the “Final Rules”). Published on July 26, 2023, the Final Rules established guidelines around cybersecurity risk management, strategy, governance, and incidents for public companies subject to the Securities Exchange Act of 1934. Among several requirements under the Final Rules, companies are required to disclose cybersecurity incidents within four days of a materiality determination by filing an SEC Form 8-K.Continue Reading FBI Offers Pathway to Request Delay of SEC Cybersecurity Incident Disclosures
Uncharted Territory: The SEC Sues SolarWinds and its CISO for Securities Laws Violations in Connection with SUNBURST Cyberattack
On October 30, 2023, the Securities and Exchange Commission (the “SEC”) filed a civil lawsuit charging SolarWinds Corporation (“SolarWinds” or the “Company”) and its chief information security officer, Timothy G. Brown (“Brown”), with securities fraud, internal controls failures, misleading investors about cyber risk, and disclosure controls failures, among other violations. The SEC’s claims arise from allegedly known cybersecurity risks and vulnerabilities at SolarWinds associated with the SUNBURST cyberattack that occurred between 2018 and 2021.Continue Reading Uncharted Territory: The SEC Sues SolarWinds and its CISO for Securities Laws Violations in Connection with SUNBURST Cyberattack
Five Key Takeaways from the SEC’s Final Cybersecurity Rules for Public Companies
On July 26, 2023, the SEC finalized long-awaited disclosure rules (the “Final Rules”) regarding cybersecurity risk management, strategy, governance, and incidents by public companies that are subject to the reporting requirements of the Securities Exchange Act of 1934. While the end results are substantially similar to rules proposed by the SEC in March 2022, there are some key distinctions. Continue Reading Five Key Takeaways from the SEC’s Final Cybersecurity Rules for Public Companies
Biden Admin Eyes IoT Cyber Practices
On June 18, 2023, the Biden-Harris administration announced the launch of a new “U.S. Cyber Trust Mark” program (hereinafter the “Program”). First proposed by Federal Communication Commission (“FCC”) Chairwoman Jessica Rosenworcel, the Program aims to increase transparency and competition across the smart devices sector and to assist consumers in making informed decisions about the security of the devices they purchase.Continue Reading Biden Admin Eyes IoT Cyber Practices
California Privacy Rights Act Enforcement Delayed
In a June 30, 2023 decision by the Superior Court of California, County of Sacramento, the Court issued a ruling delaying agency enforcement of final regulations under the California Privacy Rights Act (CPRA) until March 2024. Calfornia Chamber of Commerce v. California Privacy Protection Act, Case No. 34-2023-80004106-CU-WM-GDS (Sacramento Superior Court, June 30, 2023)
Impacts of the National Cybersecurity Strategy on Government and Private Sector Collaboration
On March 2, 2023, the Biden-Harris Administration released the National Cybersecurity Strategy.[i] The highly anticipated Strategy has illuminated that a more overt and aggressive approach to mitigating cyber risks may be necessary to drive real change, leading to the anticipation of increased communication and partnerships between private companies and government agencies.[ii] The
Iowa to Introduce the Sixth Comprehensive State Privacy Law in United States
On March 15, the Iowa House passed Senate File 262 (SF 262), a comprehensive state privacy law bill. If enacted, SF 262 would be the sixth state level privacy legislation, following California, Virginia, Colorado, Utah, and Connecticut, and it would go into effect on January 1, 2025.
Iowa’s new law is closest to the Utah Consumer Privacy
China’s New Standard Contractual Clauses and Impact on Data Intensive Businesses
Eight months after the issuance of the draft Measures on the Standard Contract for the Export of Personal Information (“SCC Regulations”), on February 24, 2023, the Cyberspace Administration of China (“CAC”) released the final version of the SCCs Regulations, along with the Standard Contractual Clauses (“SCCs”). The SCCs set a baseline for cross-border data transfer
EDPB’s Opinion on EU-U.S. DPF
On February 28, 2023, the European Data Protection Board (“EDPB”) adopted its Opinion 5/2023 (the “Opinion”) on the draft adequacy decision of the European Commission regarding the EU-U.S. Data Privacy Framework (“DPF”). The DPF aims to ensure that personal data transferred from the European Union to the U.S. receives an adequate level of protection. The
Biden Administration Releases Comprehensive National Cybersecurity Strategy
On March 2, 2023, the Biden Administration released the 35-page National Cybersecurity Strategy (the “Strategy”) with a goal “to secure the full benefits of a safe and secure digital ecosystem for all Americans.”
Summary and Analysis
The Strategy highlights the government’s commitment to investing in cybersecurity research and new technologies to protect the nation’s security