Clorox Sues Cognizant for $380M Over 2023 Cyber-Attack
Clorox has filed a lawsuit against its former IT service provider, Cognizant, seeking $380 million in damages following a cyber-attack in August 2023. The attack forced Clorox to take portions of its IT systems offline, leading to significant operational disruptions and financial losses.
Clorox alleges that Cognizant is directly responsible for the hack due to negligence in password-reset protocols and identity verification. The cyber-attack caused months of operational disruption, with Clorox struggling to fully recover for weeks. It also led to production and order processing delays, and the company has reported expenses of $49 million in the six months following the incident.
Clorox is now reassessing some of its sustainability goals due to the disruptions caused by the attack. Cognizant, however, denies responsibility, stating that it did not manage Clorox's cybersecurity at the time of the incident.
Clorox's lawsuit against Cognizant is ongoing, with the company seeking direct, compensatory, and punitive damages. The impact of the cyber-attack on Clorox's operations and financials continues to be assessed, with potential long-term implications for the company's sustainability goals.
