Cyber­ attack disrupted the worldwide operations

Synopsis

In June 2017, the company disclosed that it had suffered a "network cyber ­attack" resulting in the disruption of its worldwide operations, including manufacturing, research and sales operations. It was reported that as many as 30,000 laptops/desktops were taken off line as were 7,500 servers in the immediate response to the incident.

The cyber attack shut down production for weeks, reportedly causing $1.3 billion in damage and leading to litigation when many of the company's insurers and reinsurers denied coverage for the event claiming the Russia-linked attack constituted an act of war. In January 2022, a US court ruled in favour of the company in a lawsuit filed against its insurer.

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Analyst

Courtenay Brammar

Experienced global enterprise risk and governance professional. Previously Vice President at Morgan Stanley, Deloitte Risk Advisory practitioner and PRMIA steering committee member in both London and New York.

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Companies

  • Merck & Co., Inc.

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