Data Breach & Cyber Securities & Investor Risk Management

Corporations and their leaders to add reviewing prospectus and investor cyber security and data breach disclosures to their data breach and cyber security risk management and response to do lists help guard against  post event  shareholder claims and regulator investigations.

Data breaches and other cyber events create substantial securities and other investment related risks for most businesses because these events commonly trigger business and financial losses, investigation and defense costs, penalties and other liabilities and costs that fuel shareholder disclosure obligations and shareholder lawsuits.

Securities and Exchange Commision  Chair Mary Jo White in May, 2016 has characterized cyber security as the biggest risk facing the financial system   See here.  Concern about cyber security risks to investors, SEC guidance has called for regulated entities to make disclosures about these risks to investors since as early as 2011.      See  CF Disclosure Guidance: Topic No. 2 – Cybersecurity.   Given this guidance, it should come as no surprise that the SEC has imposed substantial fines against entities following a breach.  See  e.g. R.T. Jones reaches settlement with SEC in data breach case;  Morgan Stanley Fined $1 Million for Client Data Breach.

Beyond these regulatory actions, shareholder or other investor suits also commonly  follow a breach or other cyber security events See, e.g.  Shareholder sues Wyndham board members over data breaches;  Target Data Breach Shareholder LawsuitShareholders Sue Choicepoint.

In light of these well-documented risks, corporate and other entities and their leaders to add reviewing prospectus and investor cyber security and data breach disclosures to their data breach and cyber security risk management and response to do lists help guard against post event shareholder claims and regulator investigations.

About The Author 

The author of this update, Cynthia Marcotte Stamer is a management attorney Board Certified in Labor & Employment Law by the Texas Board of Legal Specialization, author, lecturer and management and policy thought leader whose more than 28 years’ of leading edge work helping organizations and their management lead, manage operations, risk, performance and compliance have resulted in her recognition by Martindale-Hubble as a “AV-Rated Premier” (top 1%) attorney and a “Top” Attorney in Labor and Employment Law, Employee Benefits Law, Healthcare Law and Business and Commercial Law.

Highly valued for her rare ability to combine and use her detailed legal and operational knowledge and experience with talents for creative problem-solving and consensus building to find pragmatic client-centric solutions, Ms. Stamer is recognized nationally and internationally for her work helping organizations and their management use the law and process to manage people, process, compliance, operations and risk.

Ms. Stamer supports her clients as determined by the needs of her clients both on a real time, “on demand” basis as well as on longer term basis to deal with daily performance management and operations, emerging crises, strategic planning, process improvement and change management, investigations, defending litigation, audits, investigations or other enforcement challenges, government affairs and public policy.  As a continuous part of this work, Ms. Stamer advises, represents, coaches and defends public and private, domestic and international businesses, governments, employee benefit plans and their fiduciaries, and other organizations and their leaders about credentialing, engagement, contracting and other policy and program development and documentation, performance management, compensation and benefits, occupational injury and safety, and other risk and performance management of employees and other service providers, vendors and suppliers, customers and others; Federal Sentencing Guideline and other compliance, corporate governance, and internal controls; business disruption and continuity, disaster preparedness and response, occupational injury, corporate compliance, government investigation and other critical event planning, investigation and response; director, officer, and other leadership development, succession and liability management; trade secret, data security and breach, and other confidentiality and privacy policies, practices, events and processes; government and other contracting; business disruption and continuity, record retention and other documentation and reporting, and a host of other concerns. She also conducts, or assists and counsels clients to plan, conduct, review and redress findings from legal or corporate policy breaches, whistleblower or other complaints or reports, internal investigations, mock audits, government, customer, vendor, accounting firm, credentialing and other audits or investigations; employment and other services, compensation, employee benefits, investigations, officer, director and fiduciary liability, insurance and other workforce and operational aspects of mergers, acquisitions, restructurings, bankruptcies and other corporate events; cybercrime, identity theft, FACTA, HIPAA, tax, personal financial information, personal health information, trade secret and other data misappropriation or other breaches and threats to data, information, systems and processes, and other risk or compliance events; to evaluate, implement, and enforce D&O, E&O, General Liability, Fiduciary Liability, risk pools, captive insurance, indemnity, and other liability and risk retention and mitigation arrangements; as well as represents and defends organizations, employee benefit plans, and their leaders in government and private investigations and audits, regulatory actions, litigation and other enforcement actions.

A primary drafter of the Bolvian social security privatization law with extensive domestic and foreign regulatory and public affairs experience and widely recognized for her extensive involvement with U.S. health care, pension and social security and workforce policies, Ms. Stamer also has extensive government relations and public policy experience. She has been and remains deeply involved in helping to influence the Affordable Care Act and other health care, pension, social security, workforce, insurance and other policies critical to the workforce, benefits, and compensation practices and other key aspects of a broad range of businesses and their operations. She both helps her clients respond to and resolve emerging regulations and laws, government investigations and enforcement actions and helps them shape the rules through dealings with Congress and other legislatures, regulators and government officials domestically and internationally. A former lead consultant to the Government of Bolivia on its Social Security reform law and most recognized for her leadership on U.S. health and pension, wage and hour, tax, education and immigration policy reform, Ms. Stamer works with U.S. and foreign businesses, governments, trade associations, and others on workforce, social security and severance, health care, immigration, privacy and data security, tax, ethics and other laws and regulations. Founder and Executive Director of the Coalition for Responsible Healthcare Policy and its PROJECT COPE: the Coalition on Patient Empowerment and a Fellow in the American Bar Foundation and State Bar of Texas. She also works as a policy advisor and advocate to health plans, their sponsors, administrators, insurers and many other business, professional and civic organizations.

Author of the thousands of publications and workshops these and other employment, employee benefits, health care, insurance, workforce and other management matters,

Ms. Stamer also is a highly sought out speaker and industry thought leader known for empowering audiences and readers. Ms. Stamer’s insights on employee benefits, insurance, health care and workforce matters in Atlantic Information Services, The Bureau of National Affairs (BNA),, Benefits Magazine, Employee Benefit News, Texas CEO Magazine, HealthLeaders, Modern Healthcare, Business Insurance, Employee Benefits News, World At Work, Benefits Magazine, the Wall Street Journal, the Dallas Morning News, the Dallas Business Journal, the Houston Business Journal, and many other publications. She also has served as an Editorial Advisory Board Member for human resources, employee benefit and other management focused publications of BNA,, Employee Benefit News, and many other prominent publications. Ms. Stamer also regularly serves on the faculty and planning committees for symposia of LexisNexis, the American Bar Association, ALIABA, the Society of Employee Benefits Administrators, the American Law Institute, ISSA, HIMMs, and many other prominent educational and training organizations and conducts training and speaks on these and other management, compliance and public policy concerns.

Ms. Stamer also is active in the leadership of a broad range of other professional and civic organizations. For instance, Ms. Stamer presently serves or previously servied, among other things, on an American Bar Association (ABA) Joint Committee on Employee Benefits Council representative; Vice President of the North Texas Healthcare Compliance Professionals Association;  Chair of the ABA RPTE Employee Benefits & Other Compensation Committee, its Defined Contribution Committee Co-Chair, its Fiduciary Responsibility Welfare Benefit Plans Committee Chair and Co-Chair, on its Substantive Groups & Committee and as its Practice Management Vice Chair; Past Chair of the ABA Health Law Section Managed Care & Insurance Interest Group and a member of its Healthcare Coordinating Council; Vice Chair of the ABA TIPS Employee Benefit Committee; Coordinator and a Vice-Chair of the Gulf Coast TEGE Council TE Division; on the Executive Committee, BACPAC Committee, State Board of Directors, Regional Chair, Dallas Chapter Chair and Health Care Task Force of the Texas Association of Business; President of the Dallas Business Group; Vice President of the North Texas Healthcare Compliance Professionals Association,  founding Board Member and President of the Alliance for Healthcare Excellence, as a Board Member and Board Compliance Committee Chair for the National Kidney Foundation of North Texas; the Board President of the early childhood development intervention agency, The Richardson Development Center for Children; Chair of the Dallas Bar Association Employee Benefits & Executive Compensation Committee; Dallas Legislative Affairs Chair, Region IV Chair and National Consultants Board Member of the Society for Human Resources Management (SHRM), a member of the Board of Directors of the Southwest Benefits Association; a Board Member of the Dallas World Affairs Council, on the Advisory Boards of,, Employee Benefit News, and many other publications; on the faculty of the University of Dallas and a multitude of other seminar and symposium faculties, and in many other organizations..

For more information about this topic or Ms. Stamer,  contact Ms. Stamer via email here or via telephone to (469) 767-8872 or see

About Solutions Law Press, Inc.™

Solutions Law Press, Inc.™ provides human resources and employee benefit and other business risk management, legal compliance, management effectiveness and other coaching, tools and other resources, training and education on leadership, governance, human resources, employee benefits, data security and privacy, insurance, health care and other key compliance, risk management, internal controls and operational concerns. If you find this of interest, you also may be interested reviewing other Solutions Law Press, Inc.™ resources here such as:

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©2016  Cynthia Marcotte Stamer. Non-exclusive right to republish granted to Solutions Law Press. All other rights reserved.

About Cynthia Marcotte Stamer

Management attorney and operations consultant Cynthia Marcotte Stamer uses a client objective oriented approach to help businesses, governments, associations and their leaders manage people, performance, risk, legislative and regulatory affairs, data, and other essential elements of their operations.
This entry was posted in Board of Directors, CEO, CFO, Compliance, D&O, Data Security, Director Liability, Director Liabiloity, E&O, Employee Benefits, Employment, Fiduciary Responsibility, Fraud, Internal Controls, Officers, Officers Liability, Risk Management, Shareholder Liability, Turnaround Management, Uncategorized and tagged , , , , . Bookmark the permalink.

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