Class action plaintiffs have large multinationals in their sights for cyber-related security losses. In June 2019, Fedex along with their board of directors were named defendants to a class action lawsuit arising from insufficient disclosure of the effects of a major cyber attack that hit their European subsidiary which had been acquired recently.

Interestingly, unlike most cyber lawsuits, the plaintiffs here did not allege a claim for data breach (or wrongful disclosure of personal data). Usually, a cybersecurity breach incident would lead to privacy law related risks because hackers often misappropriate sensitive data often for wrongful disclosure.

Companies are well advised to explore competitive D&O coverage for cyber-related risks.

See complaint here.