SEC Sides With DiNapoli Over Express Scripts in Cyber-Risk Spat

Anders Melin

Bloomberg

Mar 8, 2018

New York State Comptroller Thomas DiNapoli scored a victory against Express Scripts Holding Co. in his push to force increased disclosures of the firm’s efforts to mitigate cyber risks.

The prescription-benefits manager must include DiNapoli’s proposal in proxy materials this year, the Securities and Exchange Commission said Wednesday in a letter to lawyers representing the comptroller’s office. The St. Louis-based company had asked the regulator for permission to omit the proposal, saying it doesn’t raise “significant policy” issues that go beyond ordinary business practices.

DiNapoli filed the proposal in November, two months after credit-reporting company Equifax Inc. revealed a breach that compromised personal information of about half the U.S. population. The New York State Common Retirement Fund oversees roughly $200 billion, including about $164 million of Express Scripts stock.