Sony Faces $1Billion Lawsuit

A Toronto firm named McPhadden Samac Tuovi has filed a proposed class action against Sony “for the breach of privacy.” The lawsuit claims damages in excess of $1 billion, which, if won, would see Sony paying the costs of credit monitoring services and fraud insurance coverage for two years.

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rabidpancakeburglar2728d ago

"which, if won"
I think that's they crucial bit of this. They won't win especially for that ungodly sum of money

Warprincess1162728d ago (Edited 2728d ago )

If they didn't care, PSN would still be online today. The hackers only stole BASIC INFORMATION. So she needs to get a life and a job.

TOO PAWNED2728d ago Show
AAACE52728d ago

Class action, usually involves a large group of people. So if there are, then they have a possibility of winning...(no pun intended).

Info was stolen! Bank accounts were accessed! Sony has even said they still aren't sure what was accessed!

This isn't the end though, as I see more lawsuits coming because everyone is looking to sue for anything!

AndrewRyan2728d ago

Sony could have prevented this but they left all account information in text format which is a huge mistake. Unfortunately everyone who signs up for PSN agrees to the terms that they can not sue sony if sony loses their information and credit cards, it's in there, deep, but it's still there.

I am pissed at Sony for not protecting my information well, and I am pissed at the hackers for taking that information. But I can't do anything about it so instead of doing something about it I am playing games because nothing can be done.

Dasteru2728d ago

@AndrewRyan, A TOS doesn't quite work that way. When a company stores peoples personal information, it is required by law to protect that info, allowing to to be leaked is a violation of federal law. A TOS is only for extending or making known of currently existing rights. It doesn't magically change or nullify federal law. In this case it wont protect them.

@anyone laughing about the suit ammount. you have to remember this is a "class action" suit, which means it applies to anyone and everyone who was effected by the leak, not just an individual person looking for a quick buck. there are 77m accounts on psn. at $1b that only works out to about $13 per person. It may sound like alot, but in this type of case, with so many people effected, it is possible for them to win.

4Sh0w2728d ago (Edited 2728d ago )

"it applies to anyone and everyone who was effected by the leak"

Well not exactly, this would only apply for Canadiens since laws almost always are specific to each country, except of course some international laws formed by mutal treaties.

Also some Class Action Lawsuits require anyone affected to "join" the lawsuit/case by signing a petition or some type of legal document to receive any money that might be due upon a verdict in their favor.

sikbeta2728d ago

IF it's proven that Sony took the necessary measures protecting their network and the breach happened regardless, there is simply no point to sue...

Troll-without-Bridge2728d ago

Class action suits wont do anything this time because the data that was leaked was faked to begin with. There is not 77 million accounts, there's about 40M real accounts and only 10 of those had vital information in it. So unless all those 10 millions were in canada... no case.

HolyOrangeCows2728d ago (Edited 2728d ago )

Considering the info released, you may as well sue the phonebook company for $1 billion.

"When was the last time you saw a phonebook showing peoples credit card information?"
News flash!
The credit card info from PSN was encrypted. Only 900/25,000+ cards from a SOE hack were leaked, and the lawsuit isn't about THAT attack.

Dasteru2728d ago

@sikbeta, Agreed, and that is exactly the part that will need to be proven in the case.

Dasteru2728d ago

@holyOrangeCows, When was the last time you saw a phonebook showing peoples credit card information? Even sony themselves haven't been able to find out for sure what info was leaked so how do you seem to know that it was just names and addresses?
There is already one guy online claiming to have had over $12k taken from his bank account and has shown photo evidence of the withdrawl from his bank statement, If that can be proven then i think its a little more severe than you make it out to be. Hopefully sony will be able to gather all the info as to what was actually taken and we will find out soon. but for now there isn't really any way for us to know for sure.

RememberThe3572728d ago (Edited 2728d ago )

According to Sony only 900 of those cards were active.

Covering the losses of 900 people will be far less than 1 billion dollars.

And issues of fraud are constant there are bound to be people who will see fraud on their accounts in this time and it have nothing to do with the PSN breach. One or two people claiming to have been victims of fraud does not make Sony liable for their loss. There are many ways that people can get your information, some guy with a bank statement of a withdrawal does not mean the card information didn't come from somewhere else.

I have my card number stolen a few months back and I never received any notice that any company I do business with had gotten breached. So you never really know.

hay2728d ago

Lol, according to this class action they claim 101m users' data were leaked. ( http://insurance-technology... )
Holy f*cking hell :D Pure moronism.

MaxXAttaxX2728d ago

Sony not only apologizes, but compensates all PSN members AND develops a much stronger security system for their network (which should answer her issue)

That's basic information that you can get anywhere.
She suffered no damages. So what the hell?

KarrBOMB2728d ago (Edited 2728d ago )

Sony admitted that to date, their still not 100% sure what was compromised. So did you read somewhere on the Interwebz that only basic info was taken or just come to that conclusion all by yourself? I think you should probably take your own advice, because for everyone that has their own credit information on PSN and not mom and dads, it sucks and can cause problems far down the road.

Dee_912728d ago


DragonKnight2728d ago

This suit will go nowhere, and I'm a little ashamed that a woman living in my city would be stupid enough to try this. I think I should look for her and talk some sense into her for what I thought were very obvious reasons.

Sony can't be held accountable for a hack. And all they need to do is show their security measures and this case will be thrown out. The credit card information on PSN was encrypted, there aren't 101m PSN users, and information such as names, addresses, and phone numbers are all public domain and readily available at your finger tips.

Of any possible cards that did have info taken from them, they all came from SOE which is a separate division and thus would have to be part of an entirely different lawsuit, which again would be thrown out once the security measures were shown.

I really can't believe how many people actually refuse to read and still believe that credit card numbers were stolen and fraud is rampant all due to PSN being hacked. All the official information should show you that this issue is not as large as the media and the haters have blown it up to be.

Perkel2728d ago (Edited 2728d ago )

@ DragonKnight

Sory but you are wrong. Data wasn't encrypted it was plain text !

Also they stored credit card info on their servers.

In this era firms are using only checkums and because of that people can't steal your information and that is why you password will be resseted after you forgot it.

All above is like being a CEO of Bank and not locking your safe.

As of stealing information about us. Even if you have Facebook profile it doesn't nulify your right to protect your information.

Also you fail to grasp a bigger picture in therms of information brokering.

There are a lot of firms who sell your information. even if it is information about 40 mln of us it's a looooooooottt of money to them.

Sony is binded by LAW to protect your information if they want to store it.

tehpees32728d ago

Doesn't it say in Sony's terms and conditions they aren't responsible for any data lost? I can't see a win here.

nickjkl2728d ago

i have a question perkel can you prove to me that the credit card information was in plain text

if not i expect you to shutup immediately and cease all discussion on the matter

DragonKnight2728d ago

@Perkel: You're wrong, Sony's official statement stated that CC info was encrypted. That means that the hackers would have seen X's where the CC number was and the security number was never stored.

If you're talking about info such as addresses and phone numbers, again that's public domain. Plus, have you ever heard of SSL? It transfers plain text information over a secure connection and it's something EVERY online service that deals with such information uses. So sorry, you're completely wrong and spreading misinformation.

Sony did protect our information, problem is that a hacker found a way around that protection using a worm to bypass firewalls. Sony can't protect against every contingency, no one can. That's the risks of having your information online. Sony followed the law by encrypting the sensitive information that could cause people to be victims of identity theft and fraud. Your address is not something that can do that, so get your panties out of a knot and use your eyes to read the REAL information and not the hate propaganda you obviously have been.

The_KELRaTH2728d ago

My bank contacted me by letter today to report they had inadvertently sent confirmation details of a new ISA savings account I just opened to someone else.

It went on to apologise and put £30 into my account as a goodwill gesture.... I feel I'm 999,999,970 short!

frostypants2728d ago

NO, bank accounts were NOT accessed. Not due to Sony, anyway. Obviously a handful of people out of 77,000,000 had fraudulent charges on their accounts. Out of that many people, they would have regardless of PSN. There's no evidence that is was BECAUSE of PSN.

frostypants2728d ago

"Sony could have prevented this but they left all account information in text format which is a huge mistake."

No they did not. CC numbers were encoded. And FYI, virtually all companies store customer info as plain text. Stop listening to bloggers who don't know what they're talking about.

catguykyou2728d ago (Edited 2728d ago )

Ignoring the fact that they did a horrible job of encrypting our information (which was just stored as plain text), I would say the people who were hurt the most were the developers/ other companies who have titles that rely on PSN and or sell software through Sony's store on PSN. They have been making 0 money this entire time. This is seriously going to hurt Sony's reputation with these developers. I know everyone here thinks the only games that matters are the ones Sony makes themselves, but this isn't the case. This was not done professionally or handled well at all. I'm not talking from a customer stand point. I'm talking about from a company to company standpoint.

I'm surprised they haven't been sued by other companies.

Kleptic2728d ago

There simply isn't enough information to go on yet, so most of this is speculation...and a TON of people in this thread are simply throwing around false shit because they clearly didn't read ANY of the article related to what was stolen...

I'm not sure of canada's class action laws...they ARE different than here (which is why the california class action suit was immediately thrown out, as there are new laws that protect tech companies in situations like this)...So i'm not commenting on whether or not this is a legitimate suit...

But in the US at least...Sony is legally obligated to do 2 things:

1.) they have to reimburse paid subscribers for time lost, at a minimum...which is why all this 'welcome back' stuff is coming to light...They are avoiding suits and problems associated with money they have been paid for a service that was temporarily not available...

2.) they have to prove to a court (if court cases do come to this) that the malicious attack was beyond their control, and that they DID have the proper security measures required for a database of this measure...which, despite what fanboys keep throwing around, they did...

a court will see that...Sony has stated numerous times, and the chat logs of apparent hackers (that may or may not be involved with the theft we are talking about) confirmed that the credit card data table was completely encrypted...the basic information was in plain text, as well as user passwords...that IS bad, but it was also behind some fairly significant security measures in the first place, all of which would hold in court...

Sony didn't have your credit cards in plain text just sitting out in the open for anyone to STOP saying that...You can blame sony all you want, but the reality is that ANY database is vulnerable to an attack like this...and any court is going to see that...I'm not protecting Sony in any way, I didn't have a card in there in the first place for reasons like this...but people need to understand there is a large difference between what Sony legally is required to do, and what they ethically should do...people are skewing those things together...

Thugbot1872728d ago

Sony, isn't free to make cost that cause other people and companies money. If credit cards have been stolen or bank account information from Debit cards. That's a big deal the bank has to investigate, not only that its a hassle for the person. If someone hijacks your identity from the information here and opens up tons of credit cards. You will spend a lot of time trying to get that stuff removed and prove it wasn't you. No only that it could affect your ability to get a job as credit scores are now part of getting the hiring process. I guess kids don't understand why this is a big deal and can try to argue.

While Sony my have done what it could have done to protect people, it still happened under there watch. Generally in a case like this the amount paid out will be lowered if the people bring the suit win, on top of that some sum will be sent to all PSN members affected.

Oner2727d ago (Edited 2727d ago )

Perkel you are misinformed & DragonKnight is correct ~

"One other point to clarify is from this weekend’s press conference. While the passwords that were stored were not “encrypted,” they were transformed using a cryptographic hash function. There is a difference between these two types of security measures which is why we said the passwords had not been encrypted. But I want to be very clear that the passwords were not stored in our database in cleartext form. For a description of the difference between encryption and hashing, follow this link."

Source ~

+ Show (25) more repliesLast reply 2723d ago
Misterhbk2728d ago

LMAO! One Billion? Really?

I think even the judge would laugh at that amount

Shadow Flare2728d ago

Especially since there's been no proven case of fraud linked with the psn hack yet

Dasteru2728d ago

@Shadow Flare, It wouldn't be fraud, but it could potentially be a breach of trust, If they can prove that sony failed to properly secure their network or encrypt the personal data.

kneon2728d ago

It is Canada so ridiculous lawsuits usually don't go as far as they would in the US.

TheDivine2728d ago

Idnt think you realize what a class action lawsuit is. There is a good chance they will win because sony knew hackers had the keys to get in and didnt protect the info instead they blocked pirated games. 1 billion is not a crazy amount for a class action lawsuit against a huge corporation, ive seen class action lawsuits win 6 billion before. You sue for EVERY ps3 owner and with the negative press and recent leaks other places this is something governments will be harsh on..

ICYUNV2728d ago (Edited 2728d ago )

I mean as PSN users does it really make sense to bring on a lawsuit, whos truly going to benefit from the suit, not us whats $13 dollars...the lawyer will, he or she would retire off this suit. Its just pointless to sue sony, when we (U.S. citizens) as a card holders are not required to repay nor are we responsible for fraud charges under federal law. So please dont fall into this BS suit it pointless when we will not get anything out of it.

Darkfocus2728d ago

their asking for sony to cover the cost of credit monitoring services and fraud insurance coverage for two years....they set the target high because judges always award whats asked for or lower. They never(well almost anyway) award higher than what the lawsuit was for...

KarrBOMB2728d ago

This is not traffic court, it's a class action suit dealing with a multi national, multi billion dollar company.

RedDragan2728d ago

This is a bit of a joke. A company that exists to monitor and track credit fraud is suing a company that is victim of a credit hack?

So, what is the point of this company even existing?

+ Show (5) more repliesLast reply 2728d ago
zeddy2728d ago

and where would the money go? i bet those assholes dont even own a ps3!

chaos-lockheart2728d ago

Or they could be the hackers them selves

KarrBOMB2728d ago


You wouldn't have happened to of played Socom back in the day would you?

egidem2728d ago

When will this whole mess stop?!?

This woman sues Sony. Why?

Because of the loss of her personal information. Why?

Because the PSN was hacked and some information was leaked. Why?

Because some angry pissed-off hackers decided to declare war on Sony. Why?

Because Sony sent them a message by suing GeoHotz. Why?

Because he decided to be himself (arrogant) and hack the PS3 to expose some private info regarding the console, while at the same time claiming that he didn't see this as opening the floodgates of piracy. Why?

Because he was being a douche by taking other hackers' credit and claiming he did this. Why?

Because he is apparently "fighting" for freedom of information. Why?

Because he thought that it's similar to his iPhone case. Just because he bought the device, he can tinker and publish its inner findings. Why?

Mainly because he claims that by hacking this machine, he was just trying to bring back the ability to install Linux on the PS3. Why?

Because he missed this feature, and Sony had it removed. Why?

Because allegedly, maintaining this feature was costing Sony money. This could also be because of Hotz's attempt in earlier 2009 to tinker with the PS3's innards via a Linux exploit.

So we can conclude that this entire shitstorm started with him.

When will this mess end...

insomnium22728d ago

I just love your reply here. Bubbles up for well said.

Armyntt2728d ago

I agree but if this were to cost Sony a billion dollars than hindsight being 20/20. They should have left him alone. It cost hotz stress,time and money but it didnt cost him the stress,time and headache Sony is going through now. Lets say Sony left him alone and his jailbreak went worldwide would it have cost Sony a billion dollars? Probably not. All Sony got from takin his ass to court was their own RROD fiasco.

egidem2728d ago

@ Armyntt

Are you SURE??

So let's play it by your rules.

You go back in time, where hotz released the authentication and signing keys for the PS3.

He technically violated a law, so you "somehow" prevent Sony from suing him. (I don't see how you'd stop this, but hey, suppose you do!)

So now people can finally bring back Linux to the PS3. (YAY! How exciting /s.)

At the same time, hackers and pirates GOT HOLD of these keys. They are sitting on their goldmine. Surely they are not going to sit there and say "No, we are not going to pirate these games...It's illegal!" ?

Ok, so now you have changed this timeline. Hackers have been invited to the PS3 hacking. It's okay now to tinker with the console and just write about any piece of code and it will run. This means that now they can put their creativity to good and of course bad use.

Methods on how to hack the PS3 would radically improve (as they did with the PSP).

Remember, you have changed the timeline. PSN doesn't get hacked. People would be secure, but there could be an even greater attack that could have been worse. Hackers would not have learned their lesson.

As bad as others think it was, Sony had to sue him. He did something that violated their terms of agreement, and they simply weren't going to take it without a fight, knowing the amount of damage his arrogance was going to cause.

I ask again,

Are you SURE??

Armyntt2728d ago

Like I said before I agree with you. But BUT would it cost Sony billions? Not to mention even with all this I doubt the hackers and pirating community are finished.

+ Show (1) more replyLast reply 2728d ago
H8GRIP2728d ago

Lawsuit - Dont you be messing with the funds for the ps3 exclusives or il kick ur @%$#... ;)

morkendo2728d ago

a BILLION DOLLARS???? nah!!! whose asking for it HACKERS??? kiss that dream good by.

showtimefolks2728d ago

and we can all move on sony has already said sorry and announced free stuff for fans

end of the day is they can make their service even more secure that's all i care about

gamers unite

Anon19742728d ago

Well, if they can prove Sony was negligent when it came to securing personal information and they think they've got a case - I guess it's their right. Personally, I don't think Sony necessarily did anything wrong. It's kinda like "My bank got robbed. This wouldn't have happened if they had a small army of ninjas outside, with trained German Shepard's"

I mean, they'll have to convince the court that Sony did something wrong or that their security was inadequate. Over the years we've seen everyone from Ebay to TD Ameritrade, from 7-11 to T.J. Maxx/Marshalls and HomeSense fall victim to hackers losing almost 200 million credit card numbers, addresses and scores of other personal information on their customers.

Hacking is a crime, just as robbing a bank. Of course we expect care to be taken with our personal information, but let's face it...if there is something worth stealing, someone will always figure out a way how. It would be nice if there was a security system that was 100% hackproof, but let's be realistic here.

In the next few months as more details come out, it'll be interesting to see if Sony's security was indeed lax, or if they're simply another corporate victim.

JokesOnYou2728d ago (Edited 2728d ago )

I hate to say it, but karma is a beeatch. It wasnt too long ago when the usual haters/n4g sony fanboys used to hate on every 360 exclusive with talk about pirating games from torrent sites and hacked 360s. Theyre all still here some usual suspects some with a new account but their stinch is still the same, protect and defend sony at all cost. Oh but that was when the mighty ps3 was falsely perceived to be un-hackable which was always primarily due to hackers not targeting ps3 because of its otherOS/linux support. This gen all the sonyfanboy hate keeps coming back to bite them in the azz, lol NOW hackers are public ememy #1, karma.

rezzah2728d ago

Every system has it's time. When the PS3 came out it received all the hate in the world, and now you see biased reviews from well known game journalists.

Its not karma, its just life. You add the points you choose to see to come to a conclusion of karma.

sak5002728d ago


Yes these same sony investors on n4g were laughing at the hackers threat and posted tons of article about 1 guy sit in one store.

ANd how they supported Sony's taking geohotz to court and were still not tired of posting news about it everytime. NOw they dont want to hear about any news of the repurcussions coming out of the stolen information.

Sony is lucky to have blind loyals who even when get screwed still blindly support the corporation. Who has lied, cheated and hidden news not only about the recent events but even before ps2 was launched.

mastiffchild2728d ago

No, no JOY. Most PS3 owners own a PC or a 360 too-in my experience-or another online gaming option and, again, as most people are RIGHT thinking and not thieves(or the enablers of or lovers of said thieves)then they NEVER celebrated piracy on ANY platform. JOY-you talk as if every PS3 gamer deserves this for somehow supporting piracy on the 360 and I just refuse to believe ,many PSfanboys ever did what you suggest. EVERY system has a few idiot supporters(no more at Sony than MS in my view and a fanboy is a fanboy regardless of what console he worships/platform he wanks over)who give us all a bad name as gamers but, seriously, this has little to do with Karma and I only wish MS had been able to catch and take to court whoever was at the root of their hacking and piracy(which follows EVERY single time making Geohot's defence possibly the most arrogant or naive in the history of justice)and SUE them.

Neither Sony nor MS nor any console provider is at fault for hackers being supported by the greedy, out of line idiots only to happy to support and hide the hackers because they're cheap gits, the enemies of gaming and enjioy stealing people's work and IP for themselves to play free.

What makes me laugh about Geohot and the supposedly hacked PS3 is that they needed someone to actually let slip(or was it stolen/left in a nbar with more future iPhone designs by someone oddly working for Sony and Apple-or Snapple I guess)the front door key to the system. Without that occurrence(and a VERY non IT event) the PS3 and PSN may well have not been hacked or jailbroken even now. As it was also fairly recent I'd suggest sony did pretty well up until circumstances and greed left them in their current mess-though none of it directly THEIR fault. there's NO karma at work here and no karma at work on the 360 where stolen games(that's all piracy means)are concerned.

There's fanboy hate on every side but, thankfully, I just don't see there being the amount you seem to and definitely don't see how karma can be involved when the vast ,majority of gamers on EVERY system BUY THEIR games and would only ever feel empathy and sympathy for fellow gamers suffering at the hands of hackers by having info stolen or systems down. I didn't EVER want the 360 hacked and pirated and have NEVER had a prated game for any of my 360s OR will ever for my PS3s , PC and Wii. I don't DESDRVE it either even if a few people were idiots and celebrated before it was wise(and it's NEVER wise to support a company as you would your sports teams, is it?)and they felt their system's were safest. don't go to their level JOY-why would you want to?

JokesOnYou2727d ago (Edited 2727d ago )

No, no mastiff just hit the search function on n4g and you will find tons of threads like the small sample readily available below vvvvvvv -where there are MANY sony loyalists all but praising anything related to 360 hacks and piracy, sure most don't come right out and say it but theres definitely a tone to their statements which suggest its either OK, funny how quickly certain 360 security measures are broken, some even post links to other torrent sites etc but most notably there is NO HEAVY OUTCRY OR PITCHFORKS DIRECTED AT HACKERS OR THE HACKING COMMUNITY in general, like we see ONLY NOW, in fact many of the links post tutorials and links right here on n4g to "educate" members on how many of these hacks can be done. And no mastiff of course not ALL ps3 fans especially outside of n4g deserve this "karma" as I put it but I'm of course speaking directly to the cult n4g sony loyalists and if you're going to sit there with a straight face and pretend that over the last few years regarding this subject on n4g in particular that its just been a "few" random sonyfanboys promoting, celebrating or showing alot of in-difference to piracy on the 360 then we really can't have any further intelligent conversation on the matter. I'll add for the vast majority of normal sony fans around the world this is unfortunate, but I'll stand by my belief that for 90% of the sony loyalists who visit n4g daily this is most definitely KARMA.

Reminds me a bit of the whole BS notion that sony loyalists only hate on 360 so much on this site because ps3 was bashed (unfairly) when it was launched, conveniently sony faithful forget all the brand taunting and iferiority claims made by both sony and their fanbase during the year before ps3 launched, "ps3 will outsell 360 in 6 months", "ps3 launch games will be so much better than 360", "360 won't be around in another 5yrs", and blah, blah, blah. yep, Karma.

+ Show (1) more replyLast reply 2727d ago
SephireX2728d ago

I guess its live by the sue, die by the sue? Disagree and I'll sue your ass!

shadowknight2032727d ago

I just gotta say, i accidentally ready all of those replies above me without realizing how much I had read..and I gotta say omg! took me 20 minutes just to read all that...stupid me, stupid me lmao

+ Show (7) more repliesLast reply 2723d ago
rajman2728d ago

lol at $1 everyone else will try the same amount

Menech2728d ago

Screw that am trying for 15 billion, what's the point of being realistic.

$1 Billion certainly ain't, in fact ama try for 150 billion see how far I get.

chaos-lockheart2728d ago

I'm sure Sony has more then that

StbI9902728d ago

How about claim the whole sony account instead? rich rich

f7897902728d ago

Well it's a class action meaning it represents all users. It also means the lawyers get a major cut if won which is why they ask for such a stupid amount in the first place.

TeCh772728d ago (Edited 2728d ago )

1 billion/70 million is a little over 14 bucks a person. lol

Not sure of the "official" number of accounts, and obviously some people have multiples.

sikbeta2728d ago

$14 a person, BUT they have to pay those lawyers, so lets say $0.14 a person lol

cliffbo2728d ago


i am a user and they do not represent me.
they can only represent users who actually take part in the class action so anyone saying they are representing all users is just plain lying.

madara0sama2728d ago

That's it! I'm suing for 1 Trillion! No one else copy me!

StbI9902728d ago

Gotta go with a gazillion xDxD

badz1492728d ago

that's not even a real value. but lawsuit always do ridiculous stuff..try it, gazilion might work lol!

fedexas2728d ago

...1 billion dollars.

Wow...seriously, just wow.