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ANALYSIS: Accellion Hack Reveals Drafting Risks in Cloud Deals

April 14, 2021, 9:00 AM

Health care company Centene’s recent breach of contract complaint against Accellion, a cloud solutions company that suffered a sophisticated cyberattack over the winter, serves as a warning bell for similarly positioned service providers. Now may be the time to re-examine strategies for negotiating data breach indemnity clauses, a path generally less traveled in cloud computing terrain.

Indemnity for Data Breach Goes Against the Grain

Accellion’s acceptance of broadly worded language in a 2015 agreement with a Centene subsidiary made it vulnerable in a traditional area of contract law: the often-overlooked indemnification clause.

In the world of cloud computing transactions,...

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