The Ponemon Institute, a privacy and information management research firm, released its fifth annual U.S. Cost of a Data Breach Study (the “Study”). According to the Study the cost of a data breach increased two dollars from last year to $204 per compromised record. Although the number of reported data breaches decreased (657 in 2008 and 498 in 2009), the average total cost of a data breach rose from $6.65 million in 2008 to $6.75 million in 2009.
United States
Medical Professionals Continue to Challenge the FTC’s Enforcement of the Red Flags Rule
By Troutman Pepper Locke on
Posted in Privacy/Data Security/Cyber Risk, United States
On January 27, 2010, the American Medical Association, American Dental Association, American Osteopathic Association, and the American Veterinary Medical Association sent a letter to the FTC Chairman, Jon Leibowitz, requesting that the FTC announce that the Red Flags Rule will not be applied against licensed health care professionals until at least 90 days after the final resolution of the American Bar Association (ABA) lawsuit (as we reported here) and commit that, if the final resolution of the ABA lawsuit is that the Red Flags Rule will not be applied to attorneys, the FTC will not apply the Red Flags Rule to licensed health care professionals either. …
Read More Medical Professionals Continue to Challenge the FTC’s Enforcement of the Red Flags Rule
Last Week in DC: The Healthcare Reform Debate – February 8, 2010
By Troutman Pepper Locke on
As the White House and Congress focused their attention on the release of President Obama’s FY 2011 Budget and the new jobs agenda, healthcare reform efforts took a back seat last week. Despite the priority shift, off the record chatter and closed door meetings continued, as speculation grew over if and how Democrats would be able to revive their stalled priority in the coming months. …
Read More Last Week in DC: The Healthcare Reform Debate – February 8, 2010
Connecticut Jury Awards $14.7 Million Against Insurer for Violation of Unfair Trade Practices Act in Auto Body Shop Class Action Lawsuit; Continued Vitality of “Cigarette Rule” at Issue
In a class action lawsuit brought by various auto body shops and the Auto Body Association of Connecticut, a Connecticut jury recently rendered a $14.7 million verdict against an insurance company for allegedly violating the Connecticut Unfair Trade Practices Act, Conn. Gen. Stat. §42-110a et seq. (“CUTPA”).
Broad New FTC Guidelines for Endorsements and Testimonials Create Risks for Manufacturers, Advertisers, Bloggers and Others
By Troutman Pepper Locke on
New revised Federal Trade Commission (FTC) guidelines for advertisements containing endorsements or testimonials focus attention on “new media” as an advertising venue. The guidelines require transparency and disclosure of any material relationship between the manufacturer and the endorser or poster.
SEC Tightens Custodial and Audit Requirements for Registered Investment Advisers who Control Client Assets
By Troutman Pepper Locke on
If you are a registered investment adviser who – directly or indirectly – has authority to obtain possession of client funds or securities (“custody”), the SEC has increased your compliance burden beginning March 12, 2010.
Connecticut Superior Court Held that Insurer Was Not Required to Provide Underinsured Motorist Coverage for Insured’s Family Member
By Troutman Pepper Locke on
A Connecticut Superior Court recently awarded summary judgment in favor of an insurer on the basis that an insured’s family member who resides in the insured’s household is not entitled to underinsured motorist benefits if they are similarly not entitled to liability coverage under the family member’s policy. …
Read More Connecticut Superior Court Held that Insurer Was Not Required to Provide Underinsured Motorist Coverage for Insured’s Family Member
Connecticut Trial Court Holds That “General Business Practice” Element of an Unfair Settlement Practice Claim Requires Multiple Acts of Misconduct Against Multiple Insureds
A Connecticut trial court recently held that the “general business practice” element of an unfair settlement practice claim under the Connecticut Unfair Insurance Practices Act, Conn. Gen. Stat. §38a-816(6) (“CUIPA”) requires that a plaintiff prove multiple unfair practices by an insurer against more than one insured. …
Read More Connecticut Trial Court Holds That “General Business Practice” Element of an Unfair Settlement Practice Claim Requires Multiple Acts of Misconduct Against Multiple Insureds
PLUS D&O Symposium Day 2: Afternoon Session II
By Troutman Pepper Locke on
Posted in D&O Liability, United States
This session’s panel provided insight into the policyholder’s expectations with regard to the scope of coverage being purchased and claims handling. The panel discussed in detail what policyholders expect from their brokers and their insurers at the procurement stage, including during coverage negotiations and setting the broker’s fee, and also in the event of a claim.
PLUS D&O Symposium Day 2: Afternoon Session I
By Troutman Pepper Locke on
Posted in D&O Liability, United States
This session’s panelists discussed the Canadian D&O industry. The panel provided an in-depth discussion of the Canadian judicial system, Canadian procedure for certifying class actions, and Canadian securities law.