Expeditors Sued by Longtime Customer over Delays Caused by 2022 Cyberattack | SupplyChainBrain

Expeditors Sued by Customer over Delays Caused by 2022 Cyberattack

Digital binary code, data numbers and secure lock icons can be seen on a hacker's hands above a computer keyboard with a dark blue tone background. Photo: iStock.com/Techa Tungateja
Digital binary code, data numbers and secure lock icons can be seen on a hacker's hands above a computer keyboard with a dark blue tone background. Photo: iStock.com/Techa Tungateja

Expeditors International of Washington is in the midst of an ongoing court battle with longtime customer iRobot over delays and lost business caused by a cyberattack the company suffered in February 2022, according to The Wall Street Journal. IRobot is seeking $2.1 million in damages.

iRobot filed a lawsuit against Expeditors in January 2023, accusing the logistics provider of breaching contractual promises for 15 years. In a court filing, Expeditors denied the allegations.

Read more: Catastrophic Cyberattack Likely in the Next Two Years, Business Chiefs Fear

IRobot claims the cyberattack forced the company to issue $900,000 in refunds to retailers due to late deliveries. An additional $23,000 reportedly had to be spent on expedited shipping to get products directly to customers in time.

A final settlement between the two sides is scheduled for February 2024l.

In its annual report, Expeditors said the cyberattack has cost the company $47 million in extra charges, with an additional $18 million spent on services to investigate the incident and cover shipping-related claims.

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