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Accellion reaches $8.1 mln settlement to resolve data breach litigation

Posted on January 14, 2022 by Dissent

Sara Merken reports:

 Accellion Inc has reached an $8.1 million deal with a proposed nationwide class to end litigation over a breach of its legacy file transfer product, a platform that allowed companies to securely share large or sensitive files, according to settlement papers filed in California federal court.

The Palo Alto-based tech company faced claims that it failed to properly secure sensitive personal information of millions of individuals after hackers exploited a vulnerability in Accellion’s platform, according to a motion for preliminary approval of the settlement, filed by the plaintiffs’ lawyers on Wednesday.

The attack by Clop threat actors resulted in one of the largest breaches of 2021 in terms of the number of breached records, and the proposed settlement does not end all litigation stemming from the incident, with some of Accellion’s clients reaching their own settlements with their affected consumers or patients.

Read more at Reuters.

Category: Business SectorCommentaries and AnalysesOf NoteSubcontractorU.S.

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