UKG Security Incident

An article from Dive Brief UKG agrees to pay up to $6M in lawsuit tied to 2021 breach The payroll services provider reached an agreement to settle a class action lawsuit tied to a ransomware attack that targeted its Kronos Private Cloud service. Published July 18, 2023 Matt Kapko Senior Reporter post share post print email license A UKG office in Weston, Florida, on Jan. 6, 2023. Photo: Obtained by Industry Dive Dive Brief: UKG reached an agreement to settle a class-action lawsuit for up to $6 million for individuals impacted by a 2021 ransomware attack that disrupted the payroll services providers Kronos Private Cloud service. The ransomware attack, which impacted multiple UKG customers such as Tesla, PepsiCo, Whole Foods and New York Citys Metropolitan Transportation Authority , hindered some customers ability to process payroll. A series of class-action lawsuits were filed by employees of UKG customers, including a group of individuals whose data was stolen during the ransomware attack. As part of the proposed settlement, UKG denies any wrongdoing ." Dive Insight: The settlement, which awaits final approval, underscores the extent to which third-party vendors can be held financially liable for cyberattacks that impact the employees of their customers customers. The ransomware attack disrupted the payroll for at least a month for more than 16,000 employees at UMass Memorial Health, which later settled a separate lawsuit for wage and hour claims for $1.2 million. The lawsuits hit UKG with allegations of negligence, breach of contract and privacy law violations. UKG agreed to provide up to $6 million for class member claims . The preliminary settlement agreement in the U.S. District Court for the Northern District of California, which must be approved by a federal judge, entitles class members up to $1,000 for ordinary losses, which include bank fees or credit monitoring losses. Individuals who suffered fraud or identity theft may seek up to $7,500, according...

... (truncated for display)