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.
$18.0M
Attorney General Jennifer Davenport joined a bipartisan coalition of 42 attorneys general in announcing a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised genetic data of 6.9 million people worldwide, including nearly 150,000 in New Jersey. The settlement provides $18 million to states from available bankruptcy funds, plus enhanced data security and consumer deletion rights for the successor entity, 23andMe Research Institute.
$45.0M
Block, Inc. agreed to a $45 million multistate settlement with 46 states for allegedly misleading consumers about the safety of Cash App, failing to protect users from fraud, and not providing promised fraud protection. The settlement requires Block to improve customer support, stop misleading claims, and educate consumers about fraud.
Attorney General Jennifer Davenport co-led a coalition of 49 attorneys general in calling on the FCC to strengthen rules to cut off scammers' access to legitimate telephone numbers. The coalition's letter requests stronger certification rules, regular reporting, and prohibitions on number cycling to combat illegal robocalls.
Governor Sherrill and Attorney General Davenport announced coordinated executive actions to reduce and eliminate junk fees in New Jersey. The initiative includes an Executive Order directing state agencies to review industries for junk fees and an Enforcement Statement from the Division of Consumer Affairs explaining how junk fee practices may violate the New Jersey Consumer Fraud Act.