Capital One Hit With Chancery Suit Over Data Breach

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By Nathan Hale (January 12, 2022, 9:37 PM EST) — A Capital One stockholder has filed a derivative suit in Delaware Chancery Court, claiming the company’s officers and directors failed to maintain adequate controls leading up to a massive data security breach in 2019, and that some sold stock at inflated prices before the value plummeted when the breach was revealed.

Michael Reiter’s 109-page complaint, which was made public Tuesday, brings claims of breach of fiduciary duty and unjust enrichment against 16 defendants, including the bank and credit card issuer’s founder, CEO and director Richard D. Fairbank.

“The individual defendants failed to establish appropriate operational risk management processes, failed to identify…

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