On December 18, 2023, prior to the trading session, VF Corp. (NYSE:VFC) issued a press release disclosing that the company was investigating unauthorized activity on its computer systems – and that the intrusion had encrypted some systems and compromised data. [1]
The SEC Cited a Number of Factors that Magnify Cybersecurity Risks for Investors:
- Increased digitalization of operations;
- Growth of remote work;
- Ability of criminals to monetize cybersecurity incidents;
- Use of digital payments; and
- Increasing reliance on third party IT service providers.[2]
As the parent company of numerous iconic apparel brands, such as The North Face and Vans, [3] VF Corp. went on to warn that this cyberattack had disrupted its ability to fulfill e-commerce orders and could not yet say whether the company’s finances would be affected.[4] With the last shopping week before Christmas in full swing, investors fled at the opening bell, pushing VF Corp.’s stock price lower by $1.55 per share, for a loss of more than 7.78 percent that day.
Chart: Bloomberg L.P.
VF Corp.’s disclosure was the most recent example of the SEC’s new disclosure rules in action. Those rules were first…
