Neptune Wellness Incurs Costs Of $2.0 Million Associated With July Cybersecurity Incident

Neptune Wellness (TSX: NEPT) (NASDAQ: NEPT) apparently has had cyber security issues recently. The company revealed within its second quarter financial results, filed this evening, that in July 2020 it was the subject of what it defines as a “cybersecurity incident” that was reported to authorities.

The company’s incident, (i.e. hack) resulted in the company paying an undisclosed sum to the “threat actor” in exchange for the destruction of data which it had managed to obtain from the company. Additional fees were also involved in the event, which include legal fees, investigation fees, costs of communication, as well as credit monitoring services that the company was resultingly forced to provide to current and former employees.

It appears that the event saw some degree of data on these current and former employees released to the bad actors, however it appears that no customers were affected by the hacking. No indication of improper use of the data has been seen as of yet. However, the company cannot assume future contingency expenses won’t arise as a result of the event.

All told, the incident has cost the company $2.0 million to date which evidently includes the ransom paid to hackers as well as the resulting contingencies from the event. Expenses are expected to continue to rise in connection with continuing to provide security measures to its employees and complying with obligations as a result of the security breach.

Neptune Wellness last traded at $1.91 on the Nasdaq.

Information for this analysis was found via Sedar and Neptune Wellness Solutions Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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