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First American Financial Wins Bid to Dismiss Shareholder Lawsuit

Sept. 23, 2021, 12:55 PM

First American Financial Corp. won dismissal of a would-be shareholder class action over a 2018 cybersecurity breach, after the U.S. District Court for the Central District of California said the shareholders failed to allege any actionable misrepresentations.

The general statements First American made about its information security program and commitment to protecting data were either true, too vague to be material, or mere puffery, Judge Dale S. Fischer said.

Other alleged misrepresentations failed because the lawsuit didn’t allege that First American had knowledge of the breach when the disclosures were made, or that the “disclosures were specific enough to misrepresent ...

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