secwatch / observer
8-K filed July 5, 2024, 7:59 PM ET ticker SAH CIK 0001043509
cyber confidence high sentiment negative materiality 0.75

Sonic Automotive updates CDK cyber incident; expects material adverse impact on Q2 earnings

SONIC AUTOMOTIVE INC

Key facts

Extracted from this filing and checked against the source text.

Cybersecurity Incidents SEC 8-K Item 1.05 confidence 0.9

SONIC AUTOMOTIVE INC disclosed a cybersecurity incident: The Company has experienced disruptions in its access to certain information systems provided by CDK Global due to a CDK cybersecurity incident, affecting its dealer management system (DMS), customer relationship management system (CRM), and other systems supporting sales, inventory and accounting f. Impact: The Company concluded the incident is reasonably likely to have a material impact on second fiscal quarter earnings due to a slower rate of vehicle sales; as of the date of this filing, it has not yet determined whether the incident has otherwise had or is otherwise reasonably likely to have a mater. Materiality is still being assessed. Discovered 2024-06-19.

Nature
The Company has experienced disruptions in its access to certain information systems provided by CDK Global due to a CDK cybersecurity incident, affecting its dealer management system (DMS), customer relationship management system (CRM), and other systems supporting sales, inventory and accounting f
Impact
The Company concluded the incident is reasonably likely to have a material impact on second fiscal quarter earnings due to a slower rate of vehicle sales; as of the date of this filing, it has not yet determined whether the incident has otherwise had or is otherwise reasonably likely to have a mater
Materiality
assessing
Discovery
2024-06-19
Exact text from the filing
the Company concluded that the Incident is reasonably likely to have a material impact on the Company’s results of operation for the second fiscal quarter ended June 30, 2024 due to, among other thing, a slower rate of vehicle sales during the period since June 19, 2024 due to the impact of the Incident on the Affected Systems. As a result, the Company expects that its earnings for the second fiscal quarter ended June 30, 2024 will be adversely impacted by the Incident. As of the date hereof, the Company has not yet determined whether the Incident has otherwise had or is otherwise reasonably likely to have a material impact on the Company and its financial condition.
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Source: SEC EDGAR
accession 0001043509-24-000060
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