Clorox Sues Cognizant for $380M Over Alleged Password Handover to Cybercriminals

TL;DR

Clorox is suing Cognizant for $380 million, alleging that Cognizant’s IT support team handed over staff passwords to cybercriminals, leading to a significant data breach.

Introduction

In a startling turn of events, Clorox has filed a $380 million lawsuit against its service desk provider, Cognizant. The lawsuit, filed in a California state court, alleges that Cognizant’s IT support team enabled a cybercriminal to infiltrate Clorox’s network by handing over staff passwords upon request¹.

Details of the Lawsuit

Allegations Against Cognizant

Clorox claims that Cognizant’s IT support crew failed to follow basic security protocols, leading to a severe data breach. The lawsuit alleges that the cybercriminal simply requested the passwords, and Cognizant’s team complied without proper verification. This lapse in security allowed the attacker to gain unauthorized access to Clorox’s network, compromising sensitive information.

Impact on Clorox

The breach has had significant repercussions for Clorox, including potential data loss, financial damages, and reputational harm. The company is seeking $380 million in damages to compensate for the losses incurred due to the breach.

Implications for Cybersecurity

This incident highlights the critical importance of robust cybersecurity measures, especially in managing third-party service providers. Companies must ensure that their partners adhere to stringent security protocols to prevent such vulnerabilities.

Conclusion

The lawsuit between Clorox and Cognizant underscores the growing threat of cyberattacks and the need for vigilant security practices. As businesses increasingly rely on third-party services, ensuring the integrity and security of these partnerships is paramount.

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References

1. The Register (2025)(Title missing). “lawsuit_clorox_vs_cognizant”. The Register. Retrieved 2025-07-23. ↩︎