Cyberattack fallout surfaces in Exela Technologies bankruptcy
Exela Technologies Inc., a Texas-based business process automation firm, filed for Chapter 11 bankruptcy in March 2025, seeking to restructure more than $1 billion in liabilities across dozens of its subsidiaries. Among them is DocuData Solutions, L.C., a company that specializes in managing and processing sensitive documents, exactly the kind of operation most vulnerable to a cybersecurity breach.
Public records and related litigation suggest an alleged 2022 ransomware incident played a significant role in Exela’s financial downturn. The breach, attributed by outside reports to the Hive ransomware group, allegedly led to data exposure, operational disruption, and mounting remediation costs that strained the company’s already precarious finances.
Court documents for DocuData and its affiliates reference categories of liabilities consistent with breach-related costs, including breach remediation contracts, potential claims under the federal Stored Communications Act (18 U.S.C. § 2701), and data privacy disputes listed in the statement of financial affairs. While Exela’s official petitions do not elaborate on the breach’s origin or scope, the company has publicly acknowledged that its remediation efforts continued into 2024, including a $35 million contract for breach notification and mitigation services.
