Lee Enterprises attributes delayed newspapers to cyberattack

A US newspaper publisher, Lee Enterprises, recently experienced service disruptions due to what it described as a “cybersecurity attack.” The company avoided using the term ransomware in its statement to the Securities and Exchange Commission (SEC) but mentioned that threat actors accessed the network, encrypted critical applications, and exfiltrated certain files. This type of attack resembles double extortion ransomware, although Lee did not explicitly state that in its filing.

The company’s Form 8-K, filed recently, was the first indication that the disruptions were likely due to ransomware, which was suspected when the issues were initially disclosed on February 7. Prior to this, Lee had referred to the incident as a “cyber incident” causing a “technology outage.”

Lee Enterprises is currently assessing the full extent of the attack and conducting forensic analyses to determine if any sensitive data or personally identifiable information (PII) was compromised. As of their most recent filing on February 12, no conclusive evidence of data compromise has been identified.

The impact of the attack has affected various business operations of the company, including product distribution, billing, collections, and vendor payments. While core products are now being distributed normally, weekly and ancillary products remain disrupted. These products contribute to 5% of the company’s total operating revenue.

The recovery process will continue over several weeks, and the attack is expected to have a substantial impact on Lee Enterprises’ future financials. The company has implemented temporary measures such as manual transaction processing and alternative distribution channels to mitigate disruptions to critical business functions.

Lee Enterprises maintains a cybersecurity insurance policy to cover incident response, forensic investigations, business interruptions, and regulatory fines. Once a full assessment is completed, the company plans to provide updated guidance.

Despite the challenges posed by the attack, Lee Enterprise’s news brands are working diligently to resolve issues and communicate with their audience about any service disruptions. Operations across 25 states are gradually returning to normal, and the company appreciates its customers’ patience during this time.

During the initial stages of the attack, many newspapers delayed their print editions, and some had to reduce the size of their publications due to automated processes being completed manually. The CEO of Lee Enterprises commended the efforts of the company’s journalists for their dedication to reporting news and maintaining operations under challenging circumstances.