Management Liability Update

Archive for the ‘Middle Market Business’ Category

LSRP Environmental Remediation Program is in Full Swing in NJ

Icon August 17, 2010 – 2:59 pm

Given that there exists over 20,000 environmental remediation sites in New Jersey, many companies have had to deal with the significant costs incurred in cleaning up contaminated sites despite the economic slump.  In an effort to help, in May 2009, New Jersey implemented sweeping reforms to the process of environmental site remediation when it enacted the Site Remediation Reform Act [...]



Network World: Do You Need Network Security and Privacy Insurance?

Icon August 17, 2010 – 7:07 am

Two recent articles have come up with differing viewpoints regarding the merits of buying network security and privacy (NSAP) insurance.  On the one hand, an article in Network World has taken the position that it is almost foolish not to have NSAP insurance given the potential damages, increasing threats and the inability to safeguard against all such [...]



Hospital Data Continues to be at Serious Risk with Third-Party Vendors

Icon August 4, 2010 – 6:19 am

According to the 2010 HIMSS Analytics Report: Security of Patient Data, even though providers continue to update their security infrastructure, patient data remains at serious risk.  And, despite new statutory requirements for healthcare privacy and security, these critical gaps remain.  The study’s conclusion is not that surprising given new healthcare breaches are being reported on a daily basis. One improvement that can be immediately implemented with little [...]



Tech Vendors Need Strong Hybrid Mix of Legal and Risk Management Counsel to Avoid Fraud Lawsuits

Icon July 12, 2010 – 9:34 am

A growing list of technolgy vendor settlements should be a wake up call to tech vendors both large and small.   For example, last month, HP resolved a legacy EDP lawsuit to the tune of $460 million.  The facts of the case are not very complicated.  A decade ago, British firm BSkyB retained EDS to provide a CRM system for BSkyB’s help [...]



HHS Issues Proposed New HIPAA Regulations and Breach Portal

Icon July 9, 2010 – 7:31 am

Using a lavish press conference as the backdrop, HHS officials announced yesterday proposed changes to the HIPAA regulations as well as an updated web page listing those breaches impacting more than 500 individuals.  The purpose of the new Rules issued yesterday is to align the HIPAA rules with the HITECH Act passed last year.   Specifically, the press announcement states:  The [...]



Exposure to Software Copyright Claims

Icon July 9, 2010 – 7:26 am

Claims arising out of internally-used software continue to be a significant retained IT risk factor.  When President Obama picked the Business Software Alliance’s General Counsel Neil MacBride for a senior Justice Department post, it was a clear message that we will see increased software compliance audits – and possible new penalties.  The increasing use of [...]



Business Method Patents Live on Another Day: Bilski Decided by SCOTUS

Icon June 28, 2010 – 12:15 pm

Today’s Bilski v. Kappos decision rejected having a Federal Circuit test for determining patentable subject matter as a “knock out” test for business methods.  If affirmed, this Machine-or-Transformation Test (if applied as the sole test) would have likely rejected all business method patent applications.  As it stands, the United States is the only country that allows for business method patents.  After today’s [...]



No Need to Pierce Corporate Veil Under NJ Consumer Fraud Act

Icon June 28, 2010 – 6:49 am

A New Jersey Appellate Division panel ruled on June 23, 2010 that principals of a company can be found personally liable under New Jersey’s Consumer Fraud Act (CFA) even without actual knowledge about alleged unlawful practices sufficient to pierce the corporate veil.   As well, the court ruled that there was no need to prove intent before triggering the [...]



Symantec Survey: SMBs Invest in Addressing Data Security Threats

Icon June 22, 2010 – 3:06 pm

In the recently published Symantec survey of 2,500 executives with responsibility for IT security – half from companies of less than 100 employees – cyber-attacks were ranked as their top business risk.  And, of those polled by Symantec, 74 percent said they were “somewhat or extremely concerned” about losing sensitive electronic data.  In fact, 42 percent lost confidential [...]



iPad Exploit Exposes Email Addresses of 114,000 Users

Icon June 9, 2010 – 4:48 pm

According to a Gawker exclusive, a simple online request made on the AT&T network allowed access to user account information.  The information exposed in the breach “included subscribers’ email addresses, coupled with an associated ID used to authenticate the subscriber on AT&T’s network, known as the ICC-ID.”   One security consultant offered that ”recent holes discovered in the [...]