SEC Enforcement Targets Cybersecurity Disclosures Again
SEC chair Gary Gensler has pledged to bring a renewed focus to robust enforcement of the federal securities laws. Under him and director Gurbir Grewal, the SEC’s Division of Enforcement will be more aggressive in several arenas—including public company cybersecurity disclosures. In the past two months, the SEC filed two such enforcement actions in quick succession. Neither action included allegations of intentional misconduct, or any charges against individuals, but instead brought charges based on the companies’ alleged failure to maintain adequate disclosure controls and procedures, supplemented by negligence-based fraud charges in one case.
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