A Massachusetts federal court largely denied motions to dismiss in two bellwether cases against Progress Software concerning the MOVEit vulnerability. This decision allows the multidistrict litigation (MDL) related to the data security breach to move forward.
The litigation remains in its early stages, and the ultimate financial impact on Progress Software is currently uncertain. The company has previously disclosed incurring expenses related to the vulnerability, net of insurance recoveries, and expects these legal and professional services expenses to continue.
While regulatory investigations by the SEC and several international data privacy authorities have concluded without enforcement action against Progress, the ongoing legal proceedings represent a material risk. Adverse judgments or settlements could have a significant financial impact on the company.
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