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TX AG Sues PowerSchool for Breach Exposing 880K Children's Data

PowerSchoolSeptember 3, 2025Texas Attorney General

Consumers Affected

880,000

Summary

Texas Attorney General Ken Paxton filed a lawsuit against PowerSchool, a provider of cloud-based services for K-12 schools, following a data breach that exposed the personal and health information of over 880,000 Texas school-aged children and teachers. The breach occurred in December 2024 when a hacker gained administrative access through a subcontractor's account and stole unencrypted data including Social Security numbers, medical details, and disability records. The lawsuit alleges PowerSchool violated Texas law by failing to implement basic security measures and by misleading customers about its security practices.

Contract Impact

In-house legal teams should review all vendor agreements with education technology providers, particularly those handling student, children’s, or employee data, to ensure they include explicit requirements for multi-factor authentication, adequate access controls, and data encryption for all sensitive data. Contracts should also mandate compliance with applicable state privacy laws, require vendors to accurately represent their security standards without deceptive marketing claims, and include clear breach notification timelines and subcontractor security obligations. Additionally, teams should verify that vendors are contractually required to adhere to security best practices for protecting health information and student records, and that remedies for security failures are clearly outlined.

Contract Search Terms

multi-factor authentication requirementsdata encryption standardsaccess control provisionsstudent data protectionchildren's data safeguardshealth information securitysubcontractor security requirementsdata breach notification timeline

Laws Cited

Texas Deceptive Trade Practices ActIdentity Theft Enforcement and Protection Act

Violation Types

Entity Details

Entity

PowerSchool

Industry

Technology

Official Sources

Source Evidence

Entity Name
"PowerSchool"
Laws Cited
"Texas Deceptive Trade Practices Act"
Laws Cited
"Identity Theft Enforcement and Protection Act"
Violation Types
"unprecedented data breach exposed the sensitive personal identifying information and protected health information of more than 880,000 Texas school-aged children and teachers"
Violation Types
"failed to implement even the most basic security features, including multi-factor authentication, adequate access controls, and proper data encryption"
Violation Types
"provider of cloud-based services for K-12 schools"

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