Reuters News Quotes Spencer Feldman on the SEC’s Call for "Clearer" Cyber Risk Disclosure

Reuters News, VOA News, and IT Governance quoted on February 21 Olshan Corporate Partner Spencer Feldman on the SEC’s new interpretative guidance concerning a public company's obligation to disclose cybersecurity risks and incidents. Based on the thorough 24-page published interpretation, Mr. Feldman said, “[T]his essentially creates a mandatory new disclosure category—cybersecurity risks and incidents.” Many have welcomed the measure, as analysis from the White House Council of Economic Advisers has found that public companies frequently under report or are late to report data security breaches to investors, and neglect to disclose the concomitant financial, legal and reputational consequences. The new guidance is also designed to prevent insiders from trading in a firm’s securities while possessing nonpublic information about cybersecurity attacks.