Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The Security and Exchange Commission's (SEC) march toward putting stringent cybersecurity disclosure requirements in place for public companies and covered entities reached its endpoint last month. Some 16 months after first proposing rules for public companies and investment advisors, the SEC adopted new rules, chief among them that public companies disclose material cybersecurity breaches to investors within four days.
As SEC Chair Gary Gensler explained in a press release, "Whether a company loses a factory in a fire — or millions of files in a cybersecurity incident — it may be material to investors. Currently, many public companies provide cybersecurity disclosure to investors. I think companies and investors alike, however, would benefit if this disclosure were made in a more consistent, comparable, and decision-useful way." But as John Loyal and Jerry Bessette explain, the reporting rule carries with it potential plusses and minuses — among the latter, the potential to misinform investors and hinder the process of containing the breach.
|One of the standout elements of the new rules is an amendment to Form 8-K, which is used to notify investors of specific events—think a departing CEO or bankruptcy filing—that are too time-sensitive to be held until quarterly or annual reports. The discovery of a material cybersecurity incident will now be an event that requires an Item 1.05 Form 8-K filing within four business days of a public company determining the cybersecurity incident was material (as opposed to when it was first discovered). The one exception permitted is if the United States Attorney General notifies the SEC that such an immediate disclosure would pose a substantial risk to national security or public safety.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
End of year collections are crucial for law firms because they allow them to maximize their revenue for the year, impacting profitability, partner distributions and bonus calculations by ensuring outstanding invoices are paid before the year closes, which is especially important for meeting financial targets and managing cash flow throughout the firm.
Law firms and companies in the professional services space must recognize that clients are conducting extensive online research before making contact. Prospective buyers are no longer waiting for meetings with partners or business development professionals to understand the firm's offerings. Instead, they are seeking out information on their own, and they want to do it quickly and efficiently.
Through a balanced approach that combines incentives with accountability, firms can navigate the complexities of returning to the office while maintaining productivity and morale.
The paradigm of legal administrative support within law firms has undergone a remarkable transformation over the last decade. But this begs the question: are the changes to administrative support successful, and do law firms feel they are sufficiently prepared to meet future business needs?
Counsel should include in its analysis of a case the taxability of the anticipated and sought after damages as the tax effect could be substantial.