Lawsuit and Data Breach Impact On Investors: Sony Corp (SNE)

Posted by admin December 18, 2014 0 Comment 732 views

Sony Corp (ADR) (NYSE: SNE) could find itself in more trouble in the coming weeks as four former employees have initiated legal proceedings against it for failing to adequately protect its systems. The announcement comes in the wake of U.S. government investigators maintaining that North Korea was behind the daring hack attack that has seen employee’s personal information being floated in the internet.

Sony Accused OF Complacency

The lawsuit according to ABC news will seek to gain compensation for employees whose personal data ranging from social security numbers, salary details, and personal information have been making waves on the internet. A lawsuit by two employees alleges that Sony Corp (ADR) (NYSE: SNE) had remained complacent over the years on protecting its systems despite being repeatedly hacked into.

The lawsuits come even as the U.S government continues to deliberate on whether to make public investigators finding into the matter. Sony Corp (ADR) (NYSE: SNE) has already been forced to cancel the airing of the film ‘The Interview’ that is believed to have angered the North Korean government prompting the attack. Theater chains have already pulled out of airing the film fearing they could be the subject of another. Attack

Two other employees on a Los Angeles Superior court are suing the company for failing to notify employees in advance that their data had been stolen. The employees allege that Sony Corp (ADR) (NYSE: SNE) violated California laws by failing to protect some of the most sensitive information. A shadowy group calling itself the Guardians of Peace has been releasing details regarding Sony on a daily basis that could plummet Sony into more trouble in the coming weeks as more people continue to be disgruntled.

$44 Million at a Stand Off

The cancelations are a major blow for Sony Corp (ADR) (NYSE: SNE), which is believed to have used $44 million on the film having already canceled advertising campaigns for the same. Theaters have already been threatened of retribution should they go forth and air the film that depicts the death of the North Korean leader Kim Jong-Un. FBI investigations are underway although experts maintain the hackers might have received some inside information to be successful on such an attack.

Plaintiff’s lawyers in the lawsuit also claim that released emails clearly show that Sony Corp (ADR) (NYSE: SNE) Information Technology department as well as its top lawyer already knew how vulnerable the company’s systems were, before the attack. The company is now accused of failing on its part to initiate advanced security measures that should have averted the attack.

The wave of lawsuits has already forced Sony Corp (ADR) (NYSE: SNE) to offer its employees a one year of credit monitoring as some of their information online could be used to carry out further damages.

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