Blackbaud settles muti-state Attorneys General investigation of 2020 incident

Blackbaud has reached a settlement with 49 state Attorneys General and the District of Columbia related to the previously disclosed multi-state investigation of its 2020 security incident. Blackbaud has agreed to pay a total of $49.5M to the 49 states and District of Columbia. In addition, Blackbaud has agreed to comply with applicable laws, not to make misleading statements related to its data protection, privacy, security, confidentiality, integrity, breach notification requirements and similar matters and to implement and improve certain cybersecurity programs and tools. The settlement amount was fully accrued as a contingent liability in the company’s financial statements as of June 30, 2023. Blackbaud expects to pay the full settlement to each state and the District of Columbia in October 2023 from its existing liquidity. This settlement does not impact Blackbaud’s previously provided 2023 financial guidance.