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You heard that correctly. Mondelez International recently filed a complaint in Illinois alleging that Zurich American Insurance Company denied coverage for a malicious cyber incident pursuant to a war exclusion that was previously only used in times of hostile conflicts. Complaint, Mondelez Int’l, Inc. v. Zurich Am. Ins. Co., No. 2018-L-011008 (Cook County, Illinois Oct. […]

Insurance companies continue to assert coverage exclusions incorporated into their cyber insurance policies in an attempt to avoid providing coverage to their insureds. The latest example to be adjudicated is the “False Pretense Exclusion” that appears in insurance policies issued or underwritten by Sentinel Insurance Company. Rainforest Chocolate, LLC v. Sentinel Ins. Co., 2018 VT

I received an e-mail late last Friday afternoon. It was the end of the week and the end of the day, and truth be told, I was trying to get out of the office for the weekend. The e-mail came from a firm client, was sent with “High Importance,” and included the following text: “I

Corporations can realize significant savings by contracting for offshore technology assistance, but you must ensure that the associated risks do not outweigh the savings. A Missouri complaint that was recently filed provides a cautionary tale. While this case is in its infancy and the facts from the complaint remain allegations, it highlights the risks involved

Policy holders are on a “cyber” roll in July, having prevailed in claims against their insurance carriers in two closely-watched “computer fraud” cases on appeal. In Medidata Solutions, Inc. v. Federal Insurance Company, the U.S. Court of Appels for the Second Circuit affirmed the lower court’s grant of summary judgment in favor of the insured

Although companies may be operating under the perfectly reasonable expectation that their insurance policies cover them against cyberfraud schemes, they might be surprised to know (or maybe not) that their insurers are taking the exact opposite position when confronted with such claims. In courtrooms across the country, insurers are consistently denying coverage for claims made

As I was delving into my newest “book club” book, Thomas More – A Portrait of Courage, I couldn’t help but recognize my firm’s values in the example set by Thomas More, and I tried to imagine a world in which all outside counsel acted accordingly: As a lawyer, he acquired a reputation for honesty

Plaintiff, Medidata Solutions, filed a 2015 lawsuit against Federal Insurance Company for coverage of a $4.8M fraudulent wire transfer (Cause No. 1:15-cv-00907 S.D.N.Y). According to the facts of the case, Medidata notified its finance department of a potential acquisition that could require urgent assistance in the summer of 2014. With knowledge of this transaction, the

Antivirus software pioneer John McAfee agreed not to use his name in connection with cybersecurity products or services in order to settle a lawsuit against Intel Corporation, which purchased McAfee Associates in 2011 for $7.7 billion. McAfee and MGT Capital Investments, Inc., where McAfee serves as CEO, filed the suit last year seeking a declaration

If cybersecurity is not currently at the top of your company’s to-do list, then it should be. Anthem Inc., the nation’s second largest health insurer, agreed to a $115M settlement package to end litigation surrounding a 2015 data breach that affected nearly 80 million people. According to the deal, Anthem will (1) provide two years