Following on the heels of his statement last month clarifying that companies should not file Form 8-K under Item 1.05 in connection with a cybersecurity incident that they have determined isn’t material or for which they have not yet made a materiality determination, Corp Fin Director Erik Gerding issued this statement last week clarifying that disclosure of material cybersecurity incidents on an Item 1.05 Form 8-K doesn’t preclude companies from sharing information beyond that disclosed in the 8-K with others, including contractual counterparties.

Director Gerding notes that Regulation FD offers various alternatives for sharing this information without raising selective disclosure concerns, such as:

  • The information is not material
  • The recipient isn’t one of the types of persons covered by Reg FD
  • There is an exclusion from Reg FD, such as the recipient has a duty of trust or confidence to the company (such as an attorney, investment banker, or accountant) or the person with whom the information is being shared expressly agrees to maintain the disclosed information in confidence (e.g., by entering into a confidentiality agreement with the company)
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Photo of Allison Handy Allison Handy

Allison Handy is the firmwide co-chair of the Corporate & Securities practice. Her extensive experience includes advising public and private companies in connection with corporate governance practices, disclosure issues, and capital markets transactions, such as equity offerings, debt offerings and tender offers. She…

Allison Handy is the firmwide co-chair of the Corporate & Securities practice. Her extensive experience includes advising public and private companies in connection with corporate governance practices, disclosure issues, and capital markets transactions, such as equity offerings, debt offerings and tender offers. She is also a leader of the firm’s Environmental, Social, and Governance advisory team.

Allison provides counsel to companies on a broad range of issues faced by management and directors in connection with the many compliance aspects of securities laws, including governance rules adopted by the Securities and Exchange Commission (SEC) and stock exchanges. She advises boards and committees in matters related to internal investigations and the efforts of shareholder activists, and works closely with in-house counsel, financial personnel, and outside auditors and advisors to help her clients prepare proxy statements and other reports to investors that meet complex disclosure obligations.