Sony's PlayStation is back on its feet but the company would feel the pinch of the breach for a long time. The breach has been
estimated to cost the company to the tune of a couple of hundred million dollars. This cost includes lost revenue, lost credibility and the cost of 'welcome back' measures. However, Sony is facing another kind of fallout too. The company is now grappling with lawsuits instituted against it for failing to protect its customers' sensitive data.
In a recently filed class action lawsuit, three men have claimed that the breach was caused by some laid-off security employees of the Japanese company. The suit also alleges that the company was complacent about fortifying its security measures despite knowing that its security system was flawed. The suit, which has been filed in the San Diego US District Court, states that only two weeks before the breach, the company had pink-slipped a large number of security employees.
The suit also accuses Sony of adopting discriminatory policies. It says that while the company was lavish in spending money over its own server security, it was lax when it came to securing customers' data. The suit stated, "Sony took numerous precautions and spent lavishly to secure its proprietary development server containing its own sensitive information "¦ but recklessly declined to provide adequate protections for its Customers' Personal Information." It looks like Sony's Welcome Back program is not yielding the expected results.