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Texas Sues PowerSchool Over K-12 Data Breach Exposing 880,000 in the State

The complaint says the ed-tech vendor misrepresented its security after failing to deploy basic safeguards.

Overview

  • Attorney General Ken Paxton’s lawsuit seeks civil penalties, mandated security upgrades, and possible restitution for affected Texans.
  • The December 19, 2024 intrusion used a subcontractor’s credentials to access PowerSchool’s systems and transfer unencrypted records to a foreign server.
  • Exposed information included names, addresses, Social Security numbers, health and disability details, special education data, and school bus stop locations.
  • PowerSchool serves more than 60 million students, and the attacker demanded $2.85 million in bitcoin; the company acknowledged making a payment to prevent disclosure, according to reporting.
  • Despite that payment, school districts received extortion threats in May, and 19-year-old Matthew D. Lane later pleaded guilty to orchestrating the attack.