On April 21, 2017, Moses Afonso Ryan LTD., a law firm in Providence, Rhode Island, sued its insurer, Sentinel Insurance Company, LTD, for $700,000 in lost billings. The lawsuit seeks to recover lost billings over a three-month period due to a ransomware attack on its computer system in which an unidentified third party took over and encrypted all of the documents and information contained on firm’s computer network. The malware was delivered as an email attachment and opened by an unknown recipient of the firm around May 22, 2015. The following month Moses Afonso contacted the third party after attempts to remove ransomware was ineffective. The cyber-attackers demanded $25,000 according to the lawsuit. The law firm paid $25,000 ransom and was provided decryption tools and keys to recover files. During the three-month-period, the firm’s attorneys were unproductive and unable to conduct business as usual. The firm lawsuit is about the breach of contract by the insurance company because it paid for loss of computer equipment rather than loss of income. Sentinel had paid $20,000, (i.e., policy maximum) for losses covered under policy dated October 13, 2015 to October 13, 2016.
Cassens Weiss, D. “Victomized by ransomware, law firm sues insurer for $700K in lost billings.” 02 May 17, http://www.abajournal.com/news/article/victimized_by_ransomware_law_firm_sues_insurer_for_700k_in_lost_billings/?utm_source=maestro&utm_medium=email&utm_campaign=weekly_email. Accessed 08, May 2017.
ABA Journal. 02 May 2017. http://www.abajournal.com/files/MosesAfonsoSuit.pdf. Accessed 08 May 2017.
ABA Journal, 02 May 2017, http://www.abajournal.com/files/SentinelAnswer.pdf. Accessed 08 May 2017.