Coforge Faces Legal Complaint From US Client Over Security Breach Incident

Coforge Ltd. on Wednesday said a US-based client has filed a complaint against the company and its North American subsidiary in a district court in Nevada. The financial impact of the complaint is unclear at this stage, the company said in an exchange filing.

According to the filing, the client has alleged that Coforge staff were involved in a security breach. Coforge said it had outsourced employees for the client's help desk, and some of them were misled by a "threat actor" into resetting passwords for certain employee accounts. These accounts were then used to access a copy of the client's customer loyalty database.

Coforge claimed the complaint mischaracterized the nature of its engagement, its role with the database, and the responsibilities of its service desk agents. The company said it did not provide core cybersecurity services, had no access to the database, and was not involved in its management or administration.

Coforge added that despite the legal proceedings, it continues to service the client and that the engagement has had "no meaningful impact" on the revenue received from them. The client does not contribute a material portion of Coforge’s overall revenue, it said.