Jessica L. Franken quoted in article “Fitbit’s IPO Is An Exercise In Disclosing Data Risks”Law360 05/27/15
Below is an excerpt:
While publicly traded companies have been on notice since 2011 that their material risk disclosures need to include both threats to their security as well as breach incidents, businesses just coming to the market, especially those that amass vast consumer data sets and are connected to the emerging “Internet of Things,” are quickly learning that a vital piece of the public offering process is to craft clear and relevant cyberrisk disclosures.
“It’s clear that if a company intends to go public, it should expect to and prior to taking this step should be in a position to comply with the SEC guidance related to cyberrisk disclosures,” Quarles & Brady LLP commercial law team leader Jessica Franken said. “While the SEC doesn’t govern them publicly until the time they go public, it doesn’t hurt to take off the training wheels and act like they’re already public.”