It should be illegal to host insecure services, especially when you're dealing with PII. Breaches keep happening and nobody gives a fuck, because the worst that'll happen is you might lose a handful of customers and buy some "credit monitoring".
Incidents like this should be followed by an audit and charges being laid. Send corp officers to jail for negligent security failures. If you can go to jail for accounting fraud, you should be able to go to jail for cybersecurity-promises-fraud.
They claim to be compliant with a number of security standards [1]. I would love to see a postmortem audit of how much of this they actually implemented.
[1] https://www.instructure.com/en-au/trust-center/compliance