Sharon Nelles, Managing Partner of S&C’s Litigation Group, spoke to Agenda about litigation concerns for corporations in the year ahead, specifically those related to ESG and cybersecurity. Sharon noted that a “significant number of governance-related litigation is driven by private litigants seeking to use the courts to promote social change,” with some alleging misrepresentations related to diversity and inclusion. “To date, these cases have not been particularly successful, but there is no reason to believe that corporate shareholders will not continue to look to the courts as a means to promote corporate commitments to particular diversity goals,” she said.
She urged directors to be aware of these litigation risks before they materialize. “With respect to ESG-related disclosures, it’s important to stay engaged on the company’s ESG strategies and alert to areas of interest to your stakeholders. Encourage active mitigation of ESG risks where feasible,” she said. “Likewise, having clear and direct cybersecurity risk disclosures is necessary and will be critical to defending claims in the wake of a data breach.”
Read “Governance, Cybersecurity Seen as Top Litigation-Drivers.”