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Marriott Hit With Derivative Suit Over Massive Data Breach (1)

March 18, 2019, 6:26 PMUpdated: March 18, 2019, 6:55 PM

Marriott International Inc.‘s officers and directors didn’t do enough to discover Starwood Hotels & Resorts Worldwide Inc.'s major data breach before acquiring it in 2016, an investor said March 15.

The hotel chain’s leaders failed to uncover the breach, which affected about 500 million guests and began in 2014, before the merger, according to a shareholder derivative suit filed in the U.S. District Court for the District of Maryland. Marriott’s directors and officers should have told investors that Starwood’s personal data storage system wasn’t secure, the complaint said.

Marriott faced its first breach-related securities suit in December. The securities...

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