{"id":84145,"date":"2023-03-13T00:17:25","date_gmt":"2023-03-13T04:17:25","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=84145"},"modified":"2023-03-13T00:14:32","modified_gmt":"2023-03-13T04:14:32","slug":"software-company-blackbaud-inc-charged-for-misleading-disclosures-about-ransomware-attack-that-impacted-charitable-donors","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/03\/2023\/software-company-blackbaud-inc-charged-for-misleading-disclosures-about-ransomware-attack-that-impacted-charitable-donors.html","title":{"rendered":"Software Company Blackbaud Inc. Charged for Misleading Disclosures About Ransomware Attack That Impacted Charitable Donors"},"content":{"rendered":"\n<p>(HedgeCo.Net) The Securities and Exchange Commission has announced that <strong>Blackbaud Inc.<\/strong>, a South Carolina-based public company that provides donor data management software to non-profit organizations, agreed to pay <strong>$3 million<\/strong> to settle charges for making misleading disclosures about a 2020 ransomware attack that impacted more than <strong>13,000<\/strong> customers.<\/p>\n\n\n\n<p>The SEC\u2019s order finds that, on July 16, 2020, Blackbaud announced that the ransomware attacker did not access donor bank account information or social security numbers. Within days of these statements, however, the company\u2019s technology and customer relations personnel learned that the attacker had in fact accessed and exfiltrated this sensitive information. These employees did not communicate this information to senior management responsible for its public disclosure because the company failed to maintain disclosure controls and procedures. Due to this failure, in August 2020, the company filed a quarterly report with the SEC that omitted this material information about the scope of the attack and misleadingly characterized the risk of an attacker obtaining such sensitive donor information as hypothetical.<\/p>\n\n\n\n<p>\u201cAs the order finds, Blackbaud failed to disclose the full impact of a ransomware attack despite its personnel learning that its earlier public statements about the attack were erroneous,\u201d said David Hirsch, Chief of the SEC Enforcement Division\u2019s Crypto Assets and Cyber Unit. \u201cPublic companies have an obligation to provide their investors with accurate and timely material information; Blackbaud failed to do so.\u201d<\/p>\n\n\n\n<p>The SEC&#8217;s order finds that Blackbaud violated Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 and Section 13(a) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-13, and 13a-15(a) thereunder. Without admitting or denying the SEC\u2019s findings, Blackbaud agreed to cease and desist from committing violations of these provisions and to pay a $3 million civil penalty.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The Securities and Exchange Commission has announced that Blackbaud Inc., a South Carolina-based public company that provides donor data management software to non-profit organizations, agreed to pay $3 million to settle charges for making misleading disclosures about a 2020 [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-84145","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/84145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=84145"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/84145\/revisions"}],"predecessor-version":[{"id":84146,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/84145\/revisions\/84146"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=84145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=84145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=84145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}