Sony Sued Over PSN Security Breach, Faces Millions in Damages

On May 11th, 2011 James Campo filed a class action suit in the U.S. District Court for the Northern District of California seeking relief for all parties injured by Sony’s subpar security practices that led to the compromise of personal information of millions of subscribers.

The complaint breaks down as follows:

  1. Breach of express warranty: Sony failed to protect customers’ personal information as promised in its privacy policy.
  2. Negligence: Sony failed to use reasonable care in handling customers’ personal information and in informing customers of the security breach.
  3. Gross Negligence: Sony knowingly failed to implement proper security measures to safeguard customer data.
  4. Negligence Per Se: Sony violated California Civil Code section 1798.82 that requires a timely disclosure when a breach of security takes place.
  5. Unlawful Business Practices: Violations under a plethora of statutes basically saying that Sony’s conduct and business practices are injurious to consumers.
  6. Unlawful Business Practices: By advertising Sony’s system and the PSN as safe even though Sony knew or should have known they had inherent defects.
  7. Violation of California Civil Code section 1798.80: Sony failed to disclose to plaintiffs the security breach without unreasonable delay.
  8. Breach of Implied Contract: Plaintiffs provided Sony their personal information in order to buy online content or play games, implicit in this transaction was Sony’s promise to use reasonable care in safeguarding that information.
  9. Bailment: Sony was the bailor of plaintiffs personal information and breached this duty by not exercising reasonable care over it.
  10. Injunctive Relief: Plaintiff wants Sony to fix the security flaws, disclose to the list of those whose information was compromised and remedy the effects of the disclosure of the confidential information.

Sony has yet to file an answer to the complaint and we probably won’t be seeing one for a bit but what is clear is that Sony faces millions/billions of dollars in damages and is likely to settle and take better care of their network security from now on.

A copy of the original complaint can be found here

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