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Here Come the RackSpace Lawsuits

Rackspace RansomwareEarlier this month, Rackspace suffered a ransomware attack on its Hosted Exchange service.  The company brought in CrowdStrike and the intrusion was limited to that service only, according to RS.

The Hosted Exchange service was a legacy product that accounted for a tiny amount of revenue (less than 1%, according to RS).  In 2022, most people who want to use Outlook are on Microsoft’s Office 365.  But it’s not surprising that some customers who’ve been hosting with Rackspace since before O365 existed haven’t quite got around to moving yet.

I’m sure they’ve moved now.

According to one of the suits, Rackspace’s was slow to respond to and communicate about the outage:

“That Rackspace offered opaque updates for days, then admitted to a ransomware event without further customer assistance is outrageous,” says Scott Cole, the principal attorney on the case. “Despite hundreds of data breaches every year in this country, I am receiving reports of vulnerabilities in Rackspace’s hosting environment that go back over a year. That, and a seeming lack of backup protocols is why a lawsuit like this is critical.”

At least three class-action suits have been filed.


1 Comment

  1. Whenever I come to this forum, I learn a lot. I wait for new posts from you. Thanks for sharing.

    December 20, 2022 @ 11:34 pm | Reply

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