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Home » Expeditors Sued by Customer over Delays Caused by 2022 Cyberattack

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
May 1, 2023
SupplyChainBrain

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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