Memphis Shelby County Schools (MSCS) has initiated legal proceedings against PowerSchool. This software company provided district-wide student information system services, but a data breach last December compromised the personal details of students and teachers. The lawsuit alleges that PowerSchool was tardy in alerting the district about the breach, taking two weeks to notify the school districts impacted by the hack, as reported by FOX13 Memphis. PowerSchool has acknowledged the breach, which was made public on December 28, 2024.
This litigation comes in response to a significant security incident in which highly sensitive information was stolen by hackers. It's understood that confidential student data managed by PowerSchool for functions like registration, attendance, grades, and report cards was exposed. WREG highlighted the importance of this data in the day-to-day operation of MSCS, revealing the extent of the potential fallout. Moreover, the lawsuit notes that PowerSchool did pay a ransom to the hackers, even though there's lingering uncertainty around the possibility of the stolen data being sold on the dark web.
Faced with the daunting prospect of transferring over a decade's worth of district data, the decision looms whether to continue the relationship with PowerSchool or sever ties amidst the ongoing legal dispute. "You really can’t just say, I’m cancelling the contract, I’m going somewhere else because they need these systems,” explained an industry expert in an interview with Action News 5, pointing out the logistical challenge such a move would entail.
