Arizona gets $1.8M of Blackbaud’s multistate settlement over 2020 data breach

Oct 5, 2023, 12:12 PM | Updated: 12:13 pm

Stock image of a cellphone with a security app. Blackbaud agreed Oct. 5, 2023, to pay $49.5 million...

Blackbaud agreed Oct. 5, 2023, to pay $49.5 million to 49 states and the District of Columbia, including $1.8 million to Arizona, as part of a settlement over a 2020 data breach. (Pixabay Stock Image)

(Pixabay Stock Image)

PHOENIX – Arizona is getting nearly $2 million as part of a multistate settlement with software company Blackbaud over a data breach three years ago, officials announced Thursday.

Under the deal, Blackbaud will pay $49.5 million to 49 states and the District of Columbia, including $1.8 million to Arizona. The South Carolina-based global cloud computing provider said it expects to make the full payment this month.

The settlement comes after Indiana and Vermont led an investigation into a 2020 ransomware incident that exposed consumers’ personal information.

Blackbaud also agreed to make changes to its security practices. The company was accused of failing to address known security gaps before the data breach and failing to notify customers in a timely fashion afterward.

“Bad actors will stop at nothing to exploit vulnerabilities, and it is incumbent upon companies like Blackbaud to be proactive, transparent and accountable in their cybersecurity measures,” Arizona Attorney General Kris Mayes said in a press release.

“The significant settlement we’ve reached not only holds Blackbaud accountable for past deficiencies but also ensures that consumers are better protected moving forward.”

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Arizona gets $1.8M of Blackbaud’s multistate settlement over 2020 data breach