JCI - Johnson Controls declines after disclosing data breach

2023-09-28 09:52:21 ET

Johnson Controls International’s ( NYSE: JCI ) stock fell as much as 4.9% on Thursday, a day after the industrial conglomerate said a "cybersecurity incident" had disrupted its computer networks.

The breach consisted of a “massive ransomware attack," technology news site Bleeping Computer reported , citing an unnamed source.

The attack originated in Asia and encrypted the data on company devices such as VMware ESXi servers. The hackers are said to be demanding a ransom of $51 million in exchange for decryption software to unlock the devices. They also will delete 27 terabytes of data stolen from Johnson Controls ( JCI ), Bleeping Computer reported.

Error message on the website for Simplex, a unit of Johnson Controls

Johnson Controls ( JCI ) makes a variety of products including heating, ventilation and air-conditioning equipment and smart-building devices.

The company said in a regulatory filing that it is working to assess whether the incident will affect its financial reporting amid continued disruptions.

“Promptly after detecting the issue, the company began an investigation with assistance from leading external cybersecurity experts and is also coordinating with its insurers,” the disclosure said. “The company continues to assess what information was impacted and is executing its incident management and protection plan.”

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