Insurers Revive Suit Against Blackbaud Over Data Breach Response

Blackbaud Inc. faces revived data breach claims from insurers after the Delaware Supreme Court ruled that presenting an aggregate case on behalf of insured parties affected by a major ransomware attack didn’t put the software company at a disadvantage.

The insurers, including Travelers Casualty and Surety Company of America and Philadelphia Indemnity Insurance Company, stated a valid breach of contract claim under New York law over Blackbaud’s response to the cyber attack, Justice Collins J. Seitz Jr. wrote.

The lawsuit stems from a 2020 breach of Blackbaud’s servers, which resulted in the theft of confidential customer data. The insurers who ...