Breach-related lawsuit settlement sees UKG commit to dispensing up to $6 million in compensation, 2021 being the year in question.
In a significant development, Ultimate Kronos Group (UKG) has reached an agreement to settle a class-action lawsuit for up to $6 million due to a 2021 ransomware attack that disrupted payroll services for numerous customers.
The settlement, part of a proposed preliminary agreement that must be approved by a federal judge, comes after a series of class-action lawsuits were filed by employees of UKG customers. These lawsuits hit UKG with allegations of negligence, breach of contract, and privacy law violations.
According to court filings, individuals who suffered fraud or identity theft may seek up to $7,500, while class members are entitled to up to $1,000 for ordinary losses such as bank fees or credit monitoring losses.
The ransomware attack, which affected UKG's Kronos Private Cloud service, disrupted payroll for more than 16,000 employees at UMass Memorial Health for at least a month. It also impacted other major companies such as Tesla, PepsiCo, Whole Foods, and New York City's Metropolitan Transportation Authority.
The settlement underscores the need for companies to be vigilant against cyberattacks, particularly those that could impact their customers. It also highlights the potential financial liability of third-party vendors for such attacks.
In response to the settlement, UKG has agreed to spend approximately $1.5 million to improve its cybersecurity defenses. The company, however, denies any wrongdoing as part of the proposed settlement.
Despite extensive searches, no other specific details about the class-action lawsuit against UKG related to the 2021 ransomware attack and payroll services could be found. Therefore, the current status of this lawsuit cannot be confirmed or detailed with the available information.
The settlement serves as a reminder for corporate stakeholders to carefully consider the risk calculus of their technology stacks, asking the question: Are we a target? As cyber threats continue to evolve, it is crucial for companies to prioritise cybersecurity to protect their customers and maintain trust.
- The settlement, involving up to $6 million, highlights the financial liability of companies in the event of a ransomware attack, particularly those using data-and-cloud-computing services.
- The incident underscores the importance of cybersecurity, as neglect can lead to breach of contract, privacy law violations, and potential finances losses for both the company and its customers.
- In the general news of cybersecurity, the UKG settlement serves as a reminder for organizations to prioritize their cybersecurity measures to secure customer privacy and build trust with their stakeholders.
- As crimes and justice continue to evolve with technology, companies must remain proactive in their cybersecurity measures to minimize the risk of becoming targets for ransomware attacks.
