Progress Software (NASDAQ:PRGS) found itself in the crosshairs once more as it disclosed having received a subpoena from the U.S. District of Columbia pertaining to a cybersecurity event surrounding its file-transfer software.

The news hit the stock hard, causing it to slide by 2.2% to $57.12 after hours.

The company had previously uncovered a zero-day vulnerability in the MOVEit file-transfer software last year, leading to a breach that compromised the personal information and records of numerous customers.

“On January 18, 2024, Progress (PRGS) received a subpoena from the Office of the Attorney General for the District of Columbia seeking various documents and information relating to the MOVEit Vulnerability,” the company stated in a regulatory filing on Friday.

The latest subpoena adds to the growing list of investigations into the MOVEit vulnerability, with domestic and foreign data privacy regulators and U.S. federal agencies all seeking information. Progress (PRGS) was previously subpoenaed by the Securities and Exchange Commission in 2023 and received a preservation notice from the Federal Trade Commission later that year.

Moreover, the company revealed that it has received formal letters from 31 affected customers and other parties, some of whom have indicated their intention to seek compensation for damages resulting from the MOVEit vulnerability.

Despite the regulatory scrutiny and legal challenges, Progress (PRGS) reported a strong performance in its Q4 2023 results, exceeding expectations for both its top and bottom line. The company’s revenue for the full year 2023 stood at $694.4 million, marking a 15% increase year-over-year. Progress (PRGS) emphasized that MOVEit Transfer and MOVEit Cloud accounted for less than 4% of its total revenue for the same period.

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