Business Context and Reporting Period
Company: Blackbaud, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: May 14, 2024
Subject: Regulation FD Disclosure regarding litigation status related to a 2020 security incident.
Financial Metrics
This filing does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. It is a legal disclosure report.
Material Changes
The filing reports a significant procedural development in consolidated consumer class action litigation concerning the 2020 security incident:
- Class Certification Denied: The U.S. District Court for the District of South Carolina denied the plaintiffs' motion for class certification due to a failure to meet the burden of proof regarding ascertainability.
- Expert Testimony Rulings: The Court granted Blackbaud's motion to exclude the plaintiffs' expert on ascertainability and denied the plaintiffs' motion to exclude Blackbaud's expert on the same issue.
- Other Motions: All other pending motions were denied as moot.
Outlook, Risks, and Contingencies
Litigation Status: The litigation remains ongoing. The Court's determination is subject to potential appeal to the Fourth Circuit Court of Appeals.
Risk Factors: Plaintiffs continue to seek monetary damages, injunctive relief, costs, and attorneys' fees related to the 2020 Security Incident.
Management Commentary: The Company directs investors to its most recent Form 10-Q (filed May 1, 2024) for additional details on the security incident and related matters.
Key Facts for Investor Verification
- Verify the specific financial impact of the 2020 security incident in the most recent Form 10-Q.
- Monitor for any notice of appeal filed by plaintiffs to the Fourth Circuit Court of Appeals.
- Confirm the status of the "ascertainability" argument in future court filings, as this was the basis for the denial of class certification.