By Cliff Edwards, Karen Gullo and Michael Riley 4/25/11
Sony Corp. (SNE)’s network entertainment unit faced a legal and regulatory backlash over delays in telling 77 million subscribers that their personal account data may have been stolen by a hacker.
A lawsuit filed yesterday in federal court in San Francisco alleges the delay left PlayStation console users exposed to losses related to any credit-card data theft. Officials in Connecticut, the U.K. and Ireland began inquiries. Sony warned customers of the security breakdown on April 26, offering its first accounting of the severity of the intrusion six days after closing the PlayStation Network and Qriocity video- and music-streaming services. The Tokyo-based company said it notified consumers as quickly as it could. “Consumers and merchants have been exposed to what is one of the largest compromises of Internet security and the greatest potential for credit-card fraud to ever occur in U.S. history,” according to the complaint. In the lawsuit, plaintiff Kristopher Johns, of Birmingham, Alabama, seeks to represent people who bought a PlayStation console, subscribe to either PlayStation Network or Qriocity service and “suffered loss of service and break of security,” according to the complaint.
Read more here –>bloomberg.com




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