News Summary
Memphis-Shelby County Schools has filed a lawsuit against PowerSchool after a data breach potentially compromised the personal information of over 485,000 students and nearly 24,000 employees. The lawsuit alleges negligence and breach of contract following PowerSchool’s delayed notification to affected parties. The massive breach raises significant cybersecurity concerns for the district, especially after investing $21 million over 12 years in PowerSchool’s services. This incident follows another software communication failure, heightening the anxiety regarding data security in the education sector.
Memphis, Tennessee – Memphis-Shelby County Schools (MSCS) has initiated legal action against its software provider, PowerSchool, following a significant data breach that potentially affects the personal information of over 485,000 students and nearly 24,000 employees. The lawsuit was filed in federal court and alleges several counts against PowerSchool, including negligence, breach of contract, and false advertising.
The data breach occurred around December 20, 2024, when hackers gained unauthorized access to PowerSchool’s systems. It is estimated that the breach compromised sensitive information belonging to at least 485,267 current and former MSCS students, as well as approximately 23,903 MSCS employees. This incident is reportedly part of a larger security crisis as PowerSchool is known to serve about 60 million users worldwide, making MSCS’s case a small fraction of the broader impact.
Critical details unveiled in the complaint indicate that PowerSchool failed to immediately communicate the breach to affected students, families, and staff. Although the company became aware of the breach on December 28, 2024, it did not notify any school districts until January 7, 2025, raising questions about its commitment to timely and transparent communication in such critical situations.
The compromised data includes a range of personal information, such as names, addresses, birthdates, social security numbers, email addresses, medical details, grades, GPAs, bus stop information, passwords for student portals, and phone numbers. The lawsuit asserts that following the breach, PowerSchool paid a ransom to the hackers but has not confirmed whether the stolen data was permanently deleted, raising concerns regarding the ongoing safety of personal information.
Over the past 12 years, MSCS has invested more than $21 million in PowerSchool services, making this breach particularly concerning for the district, which relies heavily on the vendor for managing critical educational data. The lawsuit claims that PowerSchool did not implement adequate cybersecurity measures to protect sensitive information and argues for compensatory, consequential, general, and nominal damages, which will be delineated during the trial.
This legal action follows another incident involving a different software provider, Finalsite, which faced criticism for failing to deliver urgent communications to MSCS families in September 2024. The combination of these two issues has heightened anxiety regarding the reliability of software systems used by the MSCS district and the consequences of potential data breaches.
As schools increasingly rely on technology for managing student information, the threat of cybersecurity breaches remains a critical concern. In light of this ongoing situation, MSCS is now compelled to seek legal remedies to address the damages incurred from PowerSchool, as they endeavor to safeguard the data of their students and staff in the future.
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Additional Resources
- Fox 13 Memphis
- Wikipedia: Data Breach
- Commercial Appeal
- Google Search: Memphis Shelby County Schools Data Breach
- Action News 5
- Encyclopedia Britannica: Cybersecurity
- Local Memphis
- Google News: Memphis Shelby County Schools
- WREG
- Google Scholar: Memphis Shelby County Schools Lawsuit
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the areaโwith deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
