Penalty Amount
$49,500,000
Blackbaud, a software company, experienced a ransomware attack in 2020 that exposed sensitive personal information, including protected health data, due to inadequate security practices and delayed breach notification. A multistate investigation resulted in a $49.5 million settlement, requiring Blackbaud to enhance data security, implement breach response plans, and undergo third-party assessments.
Blackbaud must pay $49.5 million to the states, implement and maintain incident response plans, provide assistance to customers for breach notifications, enhance cybersecurity training and resources, implement total database encryption and dark web monitoring, meet specific security requirements, and undergo third-party assessments for seven years.
In-house legal teams should review all vendor and customer agreements where Blackbaud acts as a data processor or service provider, particularly those involving protected health information (PHI) or other sensitive personal data. Key clauses to scrutinize include data security obligations (e.g., encryption, access controls), breach notification timelines and procedures, HIPAA compliance terms (including Business Associate Agreement requirements), audit and assessment rights, indemnification provisions, and data retention/deletion schedules. Given the settlement's focus on inadequate security and delayed notification, contracts may need amendments to mandate specific security controls (like multi-factor authentication), shorten notification windows (e.g., 72 hours), require regular third-party security audits, and impose clearer PHI handling and subprocessor management requirements to ensure compliance with state consumer protection and breach notification laws.
Entity
Blackbaud
Industry
TechnologyOfficial Press Release
https://www.njoag.gov/ag-platkin-announces-49-5-million-multistate-settlement-with-blackbaud-to-resolve-2020-data-breach/
2023 1004 BlackBaud AVC filed
https://www.nj.gov/oag/newsreleases23/2023-1004_BlackBaud-AVC-filed.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"Blackbaud"
"$49.5 million"
"state consumer protection laws, breach notification laws, and the federal Health Insurance Portability and Accountability Act (“HIPAA”)"
"by failing to implement reasonable data security and remediate known security gaps, which allowed unauthorized persons to gain access to Blackbaud’s network, and then failing to provide its customers with timely, complete, or accurate information regarding the breach"
$6.8M
California Attorney General Rob Bonta announced a $6.75 million settlement with software company Blackbaud over a 2020 data breach that exposed consumers' personal information including Social Security numbers, bank account details, and medical data. Blackbaud was found to have inadequate data security practices, failed to timely and accurately notify impacted individuals of the breach, and made misleading public disclosures about the breach and its pre-breach security measures. The settlement requires Blackbaud to pay penalties and implement enhanced data security and breach notification protocols.
$49.5M
Blackbaud, a cloud company providing donor management software, experienced a 2020 data breach exposing personal information of millions of donors through its nonprofit customers. A multistate investigation found Blackbaud failed to implement adequate data security and delayed breach notifications. As a result, Blackbaud agreed to pay $49.5 million and overhaul its security practices.
$650K
The New Jersey Attorney General and Division of Consumer Affairs announced that Match Group, Inc. will pay $650,000 and change its business practices to settle allegations that it misrepresented or failed to disclose its criminal background screening policies and practices to New Jersey users, violating the New Jersey Consumer Fraud Act and the Internet Dating Safety Act. Under a Consent Order, Match must accurately represent its screening policies, notify existing New Jersey members of updated disclosures within 150 days, and post clear and conspicuous disclosures and safety notifications about the limitations of criminal background screenings.
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