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Clorox Files Lawsuit Against Cognizant Over 2023 Cyberattack, Seeks Damages and Accountability.
ByAinvest
Thursday, Jul 24, 2025 1:53 pm ET1min read
Clorox has filed a lawsuit against Cognizant, alleging that a 2023 cyberattack was facilitated by Cognizant staff granting access to employee passwords. Analysts forecast an average target price of $140.12 for Clorox, with a high estimate of $189.00 and a low estimate of $119.00, indicating an 8.32% upside from the current price. The company maintains overall market share and has delivered its 10th consecutive quarter of gross margin expansion.
Clorox Co. (CLX.N) has filed a lawsuit against IT services provider Cognizant Technology Solutions Corp. (CTSH.O), alleging that a 2023 cyberattack was facilitated by Cognizant staff granting access to employee passwords [1]. The lawsuit, filed in California state court, claims that Cognizant's help desk staff reset passwords for hackers without proper verification, enabling the attack by the group Scattered Spider.The lawsuit, reviewed by Reuters, states that Cognizant was hired for limited help desk services and that its staff reset passwords for hackers without verifying their identity [1]. Clorox alleges that this negligence resulted in a $380 million cyberattack, causing significant business disruption and product shortages [1].
Cognizant, in an emailed statement, maintains that it was not responsible for managing Clorox's cybersecurity and that it performed its help desk services as contracted [1]. The company argues that Clorox has tried to blame Cognizant for the attack.
Analysts have forecast an average target price of $140.12 for Clorox, with a high estimate of $189.00 and a low estimate of $119.00, indicating an 8.32% upside from the current price [3]. Despite the cyberattack, Clorox maintains its overall market share and has delivered its 10th consecutive quarter of gross margin expansion [3].
References:
[1] https://www.reuters.com/legal/government/clorox-accuses-it-provider-lawsuit-giving-hackers-employee-passwords-2025-07-22/
[2] https://www.bleepingcomputer.com/news/security/hackers-fooled-cognizant-help-desk-says-clorox-in-380m-cyberattack-lawsuit/
[3] https://www.marketbeat.com/instant-alerts/filing-wakefield-asset-management-lllp-acquires-shares-of-3121-the-clorox-company-nyseclx-2025-07-24/
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