Consumer Fraud

Sony class action settlement hopes to right wrongs done by 2014 data breach

data breach Sony class action settlement hopes to right wrongs done by 2014 data breachAccording to the Wall Street Journal (WSJ), the Sony class action lawsuit brought on by roughly 50,000 current and former Sony employees whose personal, financial and medical data was exposed online in 2014 has at last reached a settlement with the company.

While the filing does not reveal the settlement’s exact terms or the amount of people covered by it, plaintiff attorney Daniel C. Girard describes the proposed settlement as, “a favorable resolution of the claims asserted by the plaintiffs.” The WSJ received no further comment from either Sony or Mr. Girard regarding the proposed settlement; however, further information on the Sony class action was set to be filed in October of this year.

The lawsuits waged against Sony claimed that the company failed to properly protect its employees’ data, despite the surge of data breaches in recent years, including past breaches of its own servers. A 2011 cyberattack against Sony’s PlayStation Network affected millions of player accounts, resulting in a security audit that located several issues with the company’s electronic security procedures.

The FBI later learned that the infamous Sony data breach originated in North Korea. Hackers in the country broke into the company in an attempt to prevent the release of the controversial comedy poking fun at North Korea, “The Interview,” but the movie still managed to gross an estimated $15 million in its first weekend of online distribution. However, the Sony data breach still succeeded in uncovering hordes of confidential company emails, as well as information on unreleased Sony films.

As a result of the Sony data breach, a high number of former Sony employees have become victims of identity fraud due to their personal and financial information being for sale on the dark web, according to PYMNTS.com.

Sources:
WSJ
PYMNTS.com