Memphis-Shelby County Schools filed a federal lawsuit against PowerSchool, alleging negligence and breach of contract tied to a December 2024 data breach that exposed sensitive student and staff information.
The district, Tennessee’s largest with 110,000 students, has spent $21 million over 12 years on PowerSchool’s services and now seeks compensation for breach-related damages.
The lawsuit claims PowerSchool failed to use multifactor authentication and gave “false hope” with its early responses, underplaying the breach’s severity. Exposed data includes Social Security numbers, medical records, academic information, and even school bus stop locations, prompting fears the info is being sold on the dark web.