Even employers who are devoted to higher callings can find themselves in worldly disputes with former employees over access to emails and computer files.
For example, the National Institute for Newman Studies is devoted to researching Cardinal John Henry Newman, who will be canonized later this year. While awaiting Newman’s ascent to sainthood, however, the Institute has been dealing with a mundane problem: a lawsuit brought by its former executive director, Robert Christie.
These words may sound silly, but for employers, they are anything but.
Phishing is the attempt to obtain sensitive electronic information—such as usernames, passwords, or financial information—under false pretenses. Often, when bad actors engage in phishing, they use email spoofing—sending emails that appear legitimate but are anything but. These emails can dupe users into disclosing confidential personal or company information.
The turn of the calendar is always a good time to reflect on what has come before and preview what lies ahead. In this post, we count down our most popular posts of 2015 about executive disputes. Later, we’ll look at what to expect in 2016.
On his way through the San Francisco International Airport with the hopes of boarding his flight to China, Silicon Valley former employee Jing Zeng was not greeted by the friendly faces of a flight crew, but rather the handcuff-wielding agents of the FBI. Detained on charges of stealing trade secrets, Mr. Zeng will have to remain in the US and explain the behavior that led up to his August 20th airport arrest. The Wall Street Journal explains that Mr. Zeng, a new employee with Machine Zone, maker of Game of War: Fire Age (you may have seen the ads prominently featuring model Kate Upton sporting medieval garb), sought to change teams and work under a different boss. His request was denied and the company eventually asked Mr. Zeng to leave. Mr. Zeng then allegedly began to download highly valuable user data from a proprietary database in an attempt to leverage his possession of the information for a more lucrative severance agreement. The company contacted the FBI, and Mr. Zeng’s arrest followed. Now, Mr. Zeng finds himself in the custody of federal authorities, although his LinkedIn profile indicates that he is “ready for next venture.”
The hacking of Sony’s private data has been one of the biggest stories in the country over the past couple of months. It won’t surprise anyone to learn that lawsuits have been filed over the breach. Indeed, the plaintiffs in several class action lawsuits are seeking to consolidate their cases into one massive Sony Data Breach Litigation case.
So far, the plaintiffs in those cases haven’t alleged claims against individual Sony officers or directors. This begs a couple of questions: is that something that plaintiffs do? And what kinds of allegations can they bring?
The answer is that a number of plaintiffs have brought claims against officers and directors who worked at companies that suffered data breaches. Typically, they allege that the defendants did not properly manage the company’s cyber risks.
For example, in February 2014, Kevin LaCroix of D&O Diary brought to our attention lawsuits that Target shareholders filed against the company’s officers and directors, arising from the massive theft of Target’s private customer information. The shareholders alleged that the company’s executives and board knew how important the security of private customer information was, and failed to take reasonable steps to put controls in order to detect and prevent a breach. Further, they alleged, the defendants exacerbated the damage by publicly minimizing the breach.