Lawson Products, Inc.

Lawson Products, Inc., a Chicago-based manufacturer, distributor, and retailer of hardware and maintenance supplies, experienced a significant data breach in 2022. The breach, which was first detected by the company on February 8, 2022, led to unauthorized access to a wide range of sensitive consumer data. The compromised data included names, addresses, Social Security numbers, driver’s license numbers, state-issued identification numbers, passport numbers, financial account information (including bank account numbers, credit card numbers, debit card numbers), and medical information[1].

The company filed an official notice of the breach on July 14, 2022, and began sending out data breach letters to all affected parties. This incident has raised concerns about the potential risks of fraud and identity theft for those impacted. In response to the breach, Lawson Products took steps to secure its network and engaged a cybersecurity firm to investigate the incident[1].

Lawson Products, Inc. is a significant player in the hardware and tools market, catering primarily to small businesses. It employs more than 1,840 people and generates approximately $417 million in annual revenue. The company offers a range of products, including abrasives, automotive tools, chemicals, cutting tools, fasteners, welding tools, and hand tools, through its distribution network[1].

Following the breach, Lawson Products faced a class action lawsuit over the data breach that reportedly exposed the personal and health information of at least 29,639 current and former employees. The lawsuit alleges that the company fell victim to a “phishing and malware” attack due to its failure to adequately train employees on data security or implement reasonable cybersecurity measures[3].

The breach and subsequent lawsuit highlight the importance of robust cybersecurity measures and the potential legal and financial consequences of failing to protect sensitive consumer and employee information. The incident also underscores the ongoing risks of fraud and identity theft that individuals face when their personal and financial information is compromised.

In addition to the data breach, Lawson Products has been active in strategic acquisitions to expand its product offerings and market reach. For instance, the company completed the acquisition of Safety Supply Illinois LLC, DBA Emergent Safety Supply (ESS), a national distributor of safety products. This acquisition is part of Lawson Products’ strategy to expand its safety product offering and technical expertise in the safety product category[2].

Overall, the data breach at Lawson Products, Inc. serves as a reminder of the critical importance of cybersecurity in protecting sensitive information and the potential repercussions for businesses that experience such breaches.

Citations:

1. https://www.jdsupra.com/legalnews/lawson-products-inc-reports-data-breach-8623857/
2. https://www.businesswire.com/news/home/20240119993037/en/Distribution-Solutions-Group%E2%80%99s-Operating-Company-Lawson-Products-Announces-Strategic-Acquisition
3. https://www.classaction.org/news/lawson-products-facing-class-action-over-data-breach-affecting-nearly-30k-current-former-employees
4. https://www.gurufocus.com/news/2194280/q3-2021-lawson-products-inc-earnings-call-transcript
5. https://www.msdlegal.com/blog/2022/07/lawson-products-inc-data-breach-class-action-investigation/
6. https://www.cleanlink.com/news/article/Lawson-Products-Acquires-Emergent-Safety-Supply–30569
7. https://www.justice.gov/archive/usao/iln/chicago/2008/pr0811_01b.pdf
8. https://english.kyodonews.net/news/2024/02/e5c071ef1d2f-kddi-to-acquire-50-stake-in-lawson-take-it-private-with-mitsubishi.html
9. https://www.turkestrauss.com/2022/07/14/lawson-products-data-breach-investigation/
10. https://www.inddist.com/operations/news/22210858/lawson-products-announces-name-change
11. https://www.justice.gov/archive/usao/iln/chicago/2008/pr0811_01a.pdf
12. https://www.businesswire.com/news/home/20230508005821/en/Distribution-Solutions-Group-Announces-Commencement-of-Rights-Offering
13. https://www.classaction.org/media/davis-v-lawson-products-inc.pdf
14. https://www.forconstructionpros.com/rental/general-tool/product/22697541/lawson-products-lawson-products-to-display-worksite-productivity-solutions-at-ara-show-2023
15. https://law.justia.com/cases/federal/district-courts/minnesota/mndce/0:2012cv02882/129179/57/
16. https://www.mdm.com/news/tech-operations/operations/lawson-products-2020-sales-decline-5-2/