Substitute Systems and Mounting Costs
State Street asserts it was forced to spend heavily on replacement products and services to maintain payroll and reporting operations. The lawsuit claims UKG Kronos failed to timely mitigate or remediate the consequences of the breach and did not promptly deliver a report necessary for State Street to comply with international regulations.
The complaint alleges that UKG Kronos only completed that required report after State Street terminated the master services agreement — six months after the ransomware attack struck.
State Street further maintains that the 2015 contract obligated UKG Kronos to maintain an adequate disaster recovery plan before any breach occurred and to provide immediate notification to customers in the event of such an incident. The bank contends those obligations were not fulfilled.
“Despite Kronos’ material breaches of the agreement and State Street’s termination for cause, Kronos has not, to date, refunded State Street for its prepaid fees under the agreement,” the complaint states.
