Sony Faces Possible Class Action Lawsuit over PSN Security Breach

June 24, 2011 -

A new lawsuit filed in federal court in San Diego on Monday (Cotorreal et al v. Sony Corporation Inc.) alleges that Sony's security breach of Sony Online Entertainment and PlayStation Network were the direct result of layoffs earlier in the month of April. In late April the company laid off around 205 employees from its MMO company SOE, closing down offices in Denver, Seattle and Tucson. These layoffs also affected the company's Network Operations Centre. The complaint alleges that Sony did not mention that any of these employees were part of "network operations" at the time of the layoffs.

The complaint also alleges that Sony rushed to protect data when it first learned of the security breach - but it wasn't user data they were concerned about. The company paid millions to secure sensitive corporate secrets, not offering the same level of action for customer data, the complaint contends.

The complaint cites a "confidential witness" as the source of its insider information, adding that Sony should have known that a major attack was eminent because it had experienced "smaller breaches" prior to the April 20 outage.

Lawyers for the plaintiff hope to have the complaint certified as a class action lawsuit, allowing millions of PSN customers in the United States join in.

Source: Reuters UK by way of Kotaku


Comments

Re: Sony Faces Possible Class Action Lawsuit over PSN ...

Hmmmm, well the not mentioning that people were associated with network operations is probably meaningless. I seriously doubt they were under any obligation to do that (or to publicly disclose layoffs at all).

Proving that the  breach was a direct result of any particular layoffs is going to be extremely difficult. I'll definitely want to read some of the documents when they actually get filed and become available.  Otherwise...I'm not particularly impressed so far.

 

NOTE: Poster is an attorney, I don't practice corporate law though and I don't practice in California. I'm going on general principles here.

Re: Sony Faces Possible Class Action Lawsuit over PSN ...

Sony is a publically traded company, so disclosing mass layoffs is likely required by SEC rules (as it can affect shareholder value/investor confidence), though I have no idea how much detail is needed about the employees to meet requirements. Even if SOE messed up there, though, it would be a regulatory infraction affecting investors, not grounds for a customer class-action suit.

I’m not sure where they are trying to go w/that other than saying that maybe some of the fired people could have prevented the breach, which is a hell of a stretch.

Re: Sony Faces Possible Class Action Lawsuit over PSN ...

I hate lawsuits like this.  If company A fires one person, and that person installs a virus on the network after being fired, then that person is soley to blame for the aftermath.  Think of the consequences of actually winning this lawsuit:  every single person laid off from SOE can then be sued by Sony for all of the damages, because a win would mean there is reasonable evidence to believe the initial claim.

I'm sorry, the criminal is solely responsible for the crime and the aftermath.

Re: Sony Faces Possible Class Action Lawsuit over PSN ...

I wouldn't say solely. If you're setting things up on a major network so that one person can do that damage without getting caught (or even ABLE to do it), you're doing it wrong.

 

Re: Sony Faces Possible Class Action Lawsuit over PSN ...

I'm getting from the article that Sony fired the staff that could have dealt with and maybe prevented the hack-in.  Still, that only makes Sony naive, not to blame.

There is the situation with state and Federal laws regarding the safekeeping of personal information.  I don't know about that, but that sounds like fines, not a class-action.  Let's face it, class-actions are supposed to support an entire group on legitimate complaints, not to blackmail a company into a settlement where the attorney's get millions and the class gets, well, nothing but the "Welcome Back," plan, and "Welcome Back" is more than enough.

Re: Sony Faces Possible Class Action Lawsuit over PSN ...

I've heard of this kind of attack way back when I was going to community college.  All it could be was a very innoccuous file that had some code in it that activated when the employee was taken off of the payroll.  The class I was in explained how the attack works, not how it's made.

Re: Sony Faces Possible Class Action Lawsuit over PSN ...

If it turns out that this was actually a premeditated attack on the part of some disgruntled employees, this could be very interesting indeed.

Re: Sony Faces Possible Class Action Lawsuit over PSN ...

 Now this will be an interesting lawsuit to read.....

 
Forgot your password?
Username :
Password :

Poll

Which video game platform are you most thankful for?:

Shout box

You're not permitted to post shouts.
Matthew WilsonI kinda hope this is not true. http://www.nintendolife.com/news/2014/11/nintendo_might_not_be_making_more_gamecube_controller_adapters_at_the_moment11/27/2014 - 1:34pm
Matthew WilsonI saw that. I wish people would stop preording, but sadly that will never happen.11/27/2014 - 1:26pm
Papa MidnightUbisoft has cancelled the Season Pass for Assassin's Creed: Unity (http://www.reddit.com/r/pcmasterrace/comments/2ni2ac/ubisoft_cancel_season_pass_for_ac_unity/)11/27/2014 - 1:08pm
NeenekoBut now I can use the christmas discount justification too,11/27/2014 - 11:46am
NeenekoI am also sorely temped by Civ:BE, mostly because I have a demo coming up and I know my productivity will tank.11/27/2014 - 11:45am
MaskedPixelanteThe Evil Within is only a month old, right? And it's already 66% off...11/27/2014 - 10:29am
MechaCrashI held off on Civ:BE because I am pretty sure it'll get a bigger discount during the Christmas sale.11/26/2014 - 11:09pm
MechaTama31I'm sorely tempted by Civ: BE, but I have to stay strong and remember what it felt like to be repeatedly kicked in the junk by Civ V...11/26/2014 - 10:58pm
MechaCrashNah, just providing more proof that GGers are lying when they claim it's really about ethics in game journalism and not a proxy war against feminism.11/26/2014 - 9:58pm
MaskedPixelanteMSS is Murdered: Soul Suspect.11/26/2014 - 8:34pm
Andrew EisenWhy the interest in Ghomeshi? Is it relevant to something we've been discussing? (Not saying it's not but it seems a rather random thing to bring up.)11/26/2014 - 6:39pm
WonderkarpJian Ghomeshi arrested on sex assault charges, released on $100K bail http://www.citynews.ca/2014/11/26/jian-ghomeshi-arrested-on-sex-assault-charges-released-on-100k-bail/11/26/2014 - 5:55pm
WonderkarpJian Ghomeshi to #Gamergate: Our culture’s toxic masculinity crisis on display http://www.salon.com/2014/10/27/jian_ghomeshi_to_gamergate_americas_toxic_masculinity_crisis_on_display/11/26/2014 - 5:55pm
WonderkarpI saw that. Amiibos are pretty awesome. I have 10 now :P11/26/2014 - 5:49pm
Matthew Wilsonon a weird side of smash news, a level 50 Amiibo almost won a tournament. http://www.siliconera.com/…/story-fox-amiibo-nearly-won-su…/ I guess Nintendo made the cpu ai better.11/26/2014 - 5:44pm
WonderkarpAny of you guys watch Game Grumps? They have an episode detailing alot of the bugs in the hilariously bad Sonic Boom https://www.youtube.com/watch?v=O3Jb3A0HLe4&list=UU9CuvdOVfMPvKCiwdGKL3cQ11/26/2014 - 4:19pm
Andrew EisenI'm blanking. What's MMS?11/26/2014 - 4:16pm
james_fudgeI keep an eye on it for really good deals11/26/2014 - 4:00pm
MaskedPixelanteEhh, MSS is only half off, I can wait for it to go under 1011/26/2014 - 3:48pm
NeenekoWhich is why I completely ignore the site.11/26/2014 - 3:15pm
 

Be Heard - Contact Your Politician