In case law, there are a few times when a single landmark decision reshapes or reframes the legal landscape. At the tail end of last year, that’s exactly what happened – and anyone involved in software development should take note.
The event was a memorandum decision from the Court of Chancery of the State of Delaware, which framed its response to a matter relating to software vulnerability. This decision, which caused Boeing to settle for an eye-watering $237.5 million (approximately £210 million), will change the commercial landscape for good.
Up to this point, there have been numerous instances where vulnerabilities in IT systems have been left unaddressed, yet directors have managed a lucky escape. Times, however, are changing. There are two key learnings for anyone involved with software development. First, shareholders, investors and lawyers are now equipped with a better understanding of exploits and the steps that should be taken to address known significant threats. Second, they’re no longer prepared to stomach losses when directors and management fail to exercise reasonable care, skill and diligence.
This better understanding coupled with investors no longer…
