Sony Data Breach Lawsuit Settlement Underscores Why Businesses Must Ensure Information Security

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Written By ESR News Blog Editor Thomas Ahearn

Information security is a critical concern for businesses to prevent embarrassing and costly data breaches that harm a company’s reputation and bottom line. The case of Corona, et al. vs. Sony Pictures Entertainment, Inc. is just one example among many of why businesses need to protect data.

Sony Pictures Entertainment (SPE) has reached a tentative settlement to end class action lawsuits resulting from a massive data breach hack revealed in November 2014 that exposed the personal information of thousands of Sony employees online, Deadline Hollywood reports.

According to court papers available on Deadline.com: “On September 1, 2015, Plaintiffs and SPE reached an agreement in principle to settle all of the claims of the putative class against SPE, subject to final documentation, which will be submitted for the Court’s approval.”

Deadline Hollywood reports that no details of the settlement were made public in the case filed in U.S. District Court, Central District of California (Los Angeles). The Plaintiffs’ motion for preliminary approval of the proposed settlement shall be filed no later than October 19, 2015.

A class action lawsuit filed against Sony in December of 2014 claimed the company did not take adequate measures to prevent a data breach that compromised the personal information of thousands of current and former Sony employees, the ESR News Blog reported last year.

The lawsuit claimed: “Their most sensitive data, including over 47,000 Social Security numbers, employment files including salaries, medical information, and anything else that their employer Sony touched, has been leaked to the public, and may even be in the hands of criminals.”

The Sony data breach hack – suspected of originating from a group with ties to North Korea over SPE’s distribution of the film The Interview – led to the exit of the co-chairman of SPE and chairman of the Motion Picture Group earlier this year, Deadline Hollywood reports.

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