Security Due Diligence In A Merger Or Acquisition: A How-To Guide

The FTC can hold an acquirer responsible for the bad data security practices of a company that it acquires. Evaluating a potential target’s data security practices, however, can be daunting and complicated by the fact that many “data” issues arise months, or years, after a transaction has closed. For example, the FTC has investigated data security breaches and unlawful data collection practices that occurred years before the company was acquired, but were discovered months after a transaction closed. The following provides a snapshot of information concerning hacking. …

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