Ransomware Hit Case Management Provider TrialWorks. What Happens Next?
"They are screwed. At the end of the day, they are dependent on TrialWorks," said one cybersecurity expert. But lawyers say there were ways to prevent that dependence, and there still may be a few ways to remedy the attack's damages.
November 06, 2019 at 12:00 PM
4 minute read
Add case management platform TrialWorks to the laundry list of companies and public sector agencies that were struck and paralyzed by a cyberattack this year. And unless lawyers backed up their client files to a separate storage network, they could be frozen out of their data by TrialWorks' problems. Still, experts say there are ways to mitigate the damage.
In emails shown to Legaltech News, on Oct. 13 TrialWorks told clients it was experiencing a "hosting outage at our data center." On Oct. 14 the company disclosed it was affected by a ransomware incident. After numerous status updates, on Oct. 31 TrialWorks issued a statement further explaining while hackers were able to "significantly" diminish access to data, the data "appears to be safe and protected." Requests for comment from TrialWorks were not returned.
The incident left some lawyers and law firms without access to their data and unable to meet court deadlines.
Late last month, BleepingComputer.com reported that 14-lawyer California firm JML Law filed an extension deadline motion to the U.S. Supreme Court because of TrialWorks' server outage.
The Miami Herald also reported a similar extension motion filed by nine-lawyer Florida firm Whittel & Melton. The firm wrote in its motion to the court, "As of Oct. 24, 2019, plaintiff's counsel remains unable to access all the necessary documents required to respond," according to the article.
However, other law firms leveraging TrialWorks could face similar uncertainty about the availability of their client data, and unless they backed up their files, they will have to wait for TrialWorks to provide access to their data.
"They are screwed," said John Simek, vice president of IT service provider, digital forensics and cybersecurity firm Sensei Enterprises Inc. "At the end of the day, they are dependent on TrialWorks."
To mitigate that dependency, Simek advised lawyers to keep copies of their client files stored on local or external hard drives or on a network cloud storage.
Indeed, while Rothermel Law Firm managing member and TrialWorks user Charles Rothermel called the incident "very frustrating" he routinely updated his client files to the cloud and made PDF copies of TrialWorks' summaries. In turn, he said he wasn't severely impacted by the lockout, but he knew numerous lawyers that were.
Morgan & Morgan's class action department leader John Yanchunis noted that lawyers should request ongoing status updates from TrialWorks and contact courts with approaching deadlines beforehand about missing data.
"If you imagine a law firm where everything is electronic based, calendaring [and] getting to files could have tremendous consequences," he said.
The next step after being locked out of client data could include bringing a legal action, where lawyers could bring breach of contract and negligence claims. Yanchunis noted that "if we have a system involving ransomware, TrialWorks' information security system was not using best practice to prevent [it]."
Yanchunis suggested bringing any lawsuit as a contingent-based class action because "any type of data breach litigation comes at a tremendous cost."
However, TrialWorks' term of service agreement includes a binding arbitration clause. Additionally, the vendor limits its liability for any breach to no more than the fees paid to use TrialWorks that month.
Simek noted that such terms are common in most legal tech and general technology agreements.
Still, Bryan Cave Leighton Paisner's data response team leader Jena Valdetero noted most vendors will attempt to go beyond the requirements of their service agreement when an incident occurs.
"There is the legal response which is, 'Our contract says you can sue us for X amount of dollars,' and then there's what you do from a bigger picture perspective because you don't want to lose your clients," she said.
Valdetero noted being forthcoming with the status of the investigation and strategizing with clients to address the ransomware-induced challenges could also bolster client confidence. "It can strengthen relationships where clients say, 'It's not great I was hit with ransomware, but at the end of the day we felt informed,'" she said.
Indeed, Rothermel said TrialWorks recently announced it wouldn't charge users in December, but the company may need to do more to win over disgruntled customers.
"Ultimately what litigators want in a practice management service is something that is secure, reliable and useful. So the financial incentive may be a start but what needs to happen is a demonstration that security issues are fixed and we need confidence that this won't happen again, that's the most important thing."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1'A Death Sentence for TikTok'?: Litigators and Experts Weigh Impact of Potential Ban on Creators and Data Privacy
- 2Bribery Case Against Former Lt. Gov. Brian Benjamin Is Dropped
- 3‘Extremely Disturbing’: AI Firms Face Class Action by ‘Taskers’ Exposed to Traumatic Content
- 4State Appeals Court Revives BraunHagey Lawsuit Alleging $4.2M Unlawful Wire to China
- 5Invoking Trump, AG Bonta Reminds Lawyers of Duties to Noncitizens in Plea Dealing
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250