Tackling Issues That Arise When Cybersecurity Collides With Bankruptcy

Cybersecurity issues are encountered at every stage of insolvency and, in some cases, can trigger a bankruptcy filing as well. From pre-filing vulnerabilities to protecting data during proceedings to impact on asset sales, these challenges demand proactive planning. This article examines pre-bankruptcy cybersecurity complexities, steps that parties can take to protect their data, both prior to and during bankruptcy proceedings, and cybersecurity considerations that arise during the sale process. See our two-part series on the sale of 23andMe’s genetic data: “Implications of the Motions for a Privacy Ombudsman and State Laws” (Apr. 16, 2025), and “Lessons for Companies Around Sensitive Data” (Apr. 23, 2025).

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