Sony Ex-Workers File Suits Against Company Over Data Breach

By Kamal Nayan - 17 Dec '14 02:19AM
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Sony Pictures Entertainment has to face two new lawsuits from four former employees who claimed that the company did not do enough to prevent hackers from stealing personal information of current and former workers.

Two employees sued the company in federal court, alleging that the company failed to secure its computer systems despite "weaknesses that it has known about for years." The lawsuit further alleges that the latest data breaches are especially "surprising and egregious" because Sony Pictures has been repeatedly attacked over the years. In a hack three years ago, millions of user accounts on Sony's PlayStation video-game network was compromised.

Two other former movie production employees sued the company in Los Angeles Superior Court alleging that the company waited too long to notify employees that their data had been stolen. According to the lawsuit, Sony violated California Laws meant to protect sensitive financial and medical information.

"The repercussions of Sony's failure to implement and maintain reasonable security practices and procedures will likely damage plaintiffs and class members for the rest of their lives," the lawsuit stated, according to The Seattle Times.

"This is not a 'bet your company' lawsuit but it is a serious matter for Sony both in terms of dollar exposure and public perception of the brand," said Jonathan Handel, an entertainment law professor at the University of Southern California Gould School of Law. "This doesn't look good for Sony, which after all is a technology company."

According to experts, these cases are just two of many that will be filed over the data breach against Sony. In addition to these lawsuits filed by employees, Sony might also face fines from government regulators, actors, directors who may never want to work for the studio again.

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