State to receive $800K in national data breach case

Missouri will receive over $800,000 in a multistate data breach settlement with software company Blackbaud Inc. (Nasdaq: BLKB).

According to a news release from the state attorney general’s office, Blackbaud is issuing $49.5 million to 50 states for deficient data security in response to a 2020 ransomware event that exposed the personal information of millions of consumers across the United States.

South Carolina-based Blackbaud provides software to nonprofit organizations, including charities, schools, churches and health care entities, to connect them with donors and manage data about their constituents. The breach of highly sensitive information – including Social Security and driver’s license numbers, financial data, donation history and protected health information – impacted over 13,000 Blackbaud customers and their respective consumer constituents, according to the release.

“I'm proud of the work my office did in this case,” Missouri Attorney General Andrew Bailey said in the release. “The attorney general's office will never stop working to protect Missouri consumers.”

Missouri’s 48-page settlement, which mirrors cases with the other states, resolves allegations that Blackbaud violated consumer protection laws and breached notification laws and health privacy laws by failing to implement data security to keep hackers from gaining access to the network, the release said.

Blackbaud also failed to provide its customers with timely, complete or accurate information regarding the breach, which is required by law. According to the settlement, Blackbaud has agreed to overhaul its data security and breach notification practices.