2015 Cyber Security Bills and Impact on Data Breaches Explored

Broadcast Date: Wednesday, August 12, 2015 from 12:00 pm to 2:00 pm (ET)

Risk and Compliance CLE & CPE, Recording

Overview:

In this two hour LIVE Webcast, The Knowledge Group has assembled a panel of notable leaders and professionals to provide the audience with an overview of newly enacted cyber security laws. The speakers will discuss the benefits and implications of the new acts and offer best practices to help in Understanding the 2015 Cyber Security Bills. This CLE course will also provide the audience with useful tips and effective measures to ensure the proper management and protection of corporate data. Guidelines on cyber risk assessment and planning essential in preparing a company from possible cyberattack and financial loss will also be discussed.

Key topics include:

National Cyber Security Protection Act
Federal Information Security Modernization Act
Cyber Security Enhancement Act
Cybersecurity Workforce Recruitment and Retention Act
Cyber Security Workforce Assessment Act
Private-Sector Information Sharing Process
Codifying Cyber Security Framework
Reform of Federal Information Systems
Federal Government's Cybersecurity Workforce
Compliance Issues
Cyber Risk Assessment
- Identifying Most Valuable Corporate Assets to Protect
- Identifying Threats
- Quantifying Risks of Cyber Attack
Strategies for Cyber Risk Mitigation
- Prevention
- Resolution
- Restitution
Transferring Risks through Cyber Insurance

Agenda:

SEGMENT 1:
Stuart T. O’Neal, Trial Attorney and Litigator
Burns and White

INTRODUCTION
- Stuart O’Neal
- Burns White
WHY DATA BREACH AND CYBER LIABILITY
- State reasons this is a hot topic
OUTLINE OF PRESENTATION
- Current Business Trends involving Personal Identifiable Information (PII)
- What is PII?
- How Can Data Security be Breached?
- The Danger of PII Being Compromised
- Data Breach Lawsuits
- Plaintiffs’ Attorney’s Strategy/Causes of Action
- Successful Theories of Defense
- Current State of Case Law/Precedent
- What can we Learn from the Current Case Law/Precedent
- What can we Anticipate moving Forward
- Resources
- Questions and Answers
CURRENT BUSINESS TRENDS INVOLVING PERSONAL IDENTIFIABLE INFORMATION (PII)
WHAT IS PII?
HOW CAN DATA SECURITY BE BREACHED?
- Hackers
- Internally
- Accidentally
THE DANGER OF PII BEING COMPROMISED
- Bad Press/Future Impact on Business
- Costs of Correction
- Costs of Litigation
- Potentially Large Settlement/Judgment Values
DATA BREACH IN THE NEWS
- Home Depot – 56 Million Credit Card Numbers
- Staples – 1.16 Million Customer Payment Cards
- Target – 40 Million Credit Card Numbers
- South Carolina Dept. of Revenue
- TRICARE Management Activity – Largest HIPAA breach in history
PLAINTIFFS’ ATTORNEY STRATEGY/CAUSES OF ACTION
- Individual Lawsuits or Class Actions
- Breach of Express/Implied Contract
- Breach of Fiduciary Duty
- Unjust Enrichment
- Negligence
- State Statutory Claims
- Federal Statutory Claims
SUCCESFUL THEORIES OF DEFENSE
- Lack of Injury in Fact
- Challenge to the Class Certification
CURRENT STATE OF CASE LAW/PRECEDENT
- Injury in Fact – no Article III standing
  - Clapper v. Amnesty International, 133 S. Ct. 1138 (2013)
  - Harris v. comScore, Inc., 825 F.Supp.2d 924 (N.D. Ill. 2011)
  - In Re: Google Inc. Cookie Placement Consumer Privacy Litigation, 988 F.Supp.2d 434 (USDC Del. 2013)
  - In re Barnes & Noble Pin Pad Litigation, No. 12-cv-8617 (N.D. Ill. 2013)
- Injury in Fact Found!!
  - Krottner v. Starbucks, No. 09-35823 (9th Cir. 2010) – Article III standing for “future harm”, but not for Washington State Law
  - Resnick v. AvMed, Inc., 693 F.3d 1317 (11th Cir. 2012) – Reversal of trial court finding no standing. Subsequently, this prompted a $3 million dollar settlement.
- Class Certification
  - Comcast Corporation, et al. v. Behrend, 133 S.Ct. 1426 (2013) – individualized damages issue precludes certification of class
  - In re Hannaford Bros. Co. Customer Data Breach Security Breach Litigation, 293 F.R.D. 21 (USDC Maine 2013) – actual effect and mitigating steps taken by class members differed too much to be certified as class.
WHAT CAN WE LEARN FROM CURRENT CASE LAW/PRECEDENT?
- Defense attorneys have two strong arguments, arising early in litigation, to defeat data breach lawsuits.
- Challenges to Injury in Fact and Class Action could significantly devalue such cases, thus leading to a desirable result for your client.
- HOWEVER…..
WHAT CAN WE ANTICIPATE MOVING FORWARD?
- Plaintiffs’ Attorneys
  - Altered strategies to counter attack the negative precedent
- Legislature
  - New statutes and Initiatives are out there that could strengthen and broaden the ability to bring litigation for Data Breach.
    - California Voters voting on “presumption of harm” in privacy breach cases.
    - Data Security and Data Breach Notification Act in front of the Senate
- Closely monitor your Jurisdiction to be aware of new developments.
RESOURCES
- The Information Law Group
- Data Breach Today
- The Knowledge Group
- Professional Liability Defense Federation
- Burns White, LLC
  - Our own Cyber Security Group will continue to stay on top of the trends and developments and post periodic articles on the subject.
QUESTIONS AND ANSWERS

SEGMENT 2:
Caroline McCaffery, General Counsel, Chief Privacy Officer
Clarifai, Inc.

How a Data Breach currently affects a company
- Training
- Breach preparedness
- Response
- Costs
- Damages - reputational
Positive and Negative of 1 Federal Breach Notification Law
- If the legislation is one federal breach notification law, that is a good thing for companies who work in technology
- However, not all companies are the same and some requirements may stifle certain sectors due to cost of compliance
Positives and Negatives of State by State Breach Notification Laws
- If the legislation continues to be state by state, it continues to burden the company with cost in both preparation and response.
- There is familiarity and expertise with this approach already
Practical advise on how to keep track of new laws in this area and breach preparedness

Who Should Attend:

Cyber Security Lawyers
Federal Lawyers
Homeland Security Lawyers
Legal Counsel
Privacy and Data Security Lawyers and Consultants
Compliance, Risk and IT Officers
Data Security Professionals
IT Heads
Risk Analysts & Controllers
Risk Officers and Administrators
Third Party Administrators
Other Related/Interested Professionals

Stuart T. O’Neal Trial Attorney and Litigator Burns and White

Stuart T. O’Neal is a trial attorney and litigator at Burns White, where he maintains an active practice throughout Pennsylvania. …

READ BIO

Caroline McCaffery General Counsel, Chief Privacy Officer Clarifai, Inc.

Caroline has 15 years of experience in counseling and providing legal services to technology start-up companies, both as in-house and …

READ BIO

Course Level:
Intermediate

Advance Preparation:
Print and review course materials

Method of Presentation:
On-demand Webcast (CLE)

Prerequisite:
NONE

Course Code:
144719

NASBA Field of Study:
Specialized Knowledge and Applications

NY Category of CLE Credit:
Skills

Total Credits:
2.0 CLE
2.0 CPE (Not eligible for QAS (On-demand) CPE credits)

Unlock All The Knowledge and Credit You Need

Leading Provider of Online Continuing Education
It's As Easy as 1, 2, 3

CHOOSE WEBCASTS

LISTEN

GET CREDITS

Get Your 1-Year All Access Pass For Only $199

Learn More

SPEAKERS' FIRMS:

REGISTRATION OPTIONS

REGISTRATION OPTIONS CLOSE PREVIEW

About Burns and White

Founded in 1987, Burns White is a regional law firm with a national presence in several practice areas. With a full range of service offerings, the firm employs more than 100 attorneys across nine office locations in Pittsburgh, PA (headquarters); Philadelphia, PA; Harrisburg, PA; Wilkes-Barre, PA; Cherry Hill, NJ; Princeton, NJ; Wheeling, WV; Wilmington, DE; and Cleveland, OH. Our lawyers are supported by a staff of more than 50 professionals, including paralegals, information technology specialists, and administrators. Together, they form teams organized around 18 practice groups serving specific industry areas, including cybersecurity, commercial litigation, business practices and employment law to provide unsurpassed service and efficiency.

Website: https://www.burnswhite.com/

About Clarifai, Inc.

Clarifai develops powerful machine learning algorithms to augment intelligence in a new generation of applications. Starting in 2013 with the world’s leading image recognition technology, Clarifai has quickly expanded to incorporate new data sources and support a variety of platforms to provide a deep understanding of image and video content at scale in many environments.

Website: https://www.clarifai.com/