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Insurer to Sony: We won’t pay for PSN hacks

Sony is still suffering from the legal aftermath following the April cyber-attacks against the PlayStation Network, which gave hackers access to personal data from over 100 million PSN users. Sony Corporation insurance company Zurich American has recently sued the electronics and media giant in New York state court, declaring that it has no obligation to pay to defend Sony from legal claims related to the PSN security breach.

According to Zurich American, 55 class-action complaints have been filed against Sony in the United States alone. Sony has also been subjected to both state and federal investigations regarding the security breach. Although Zurich American has received claims from Sony, it insists that those claims are not covered under Sony Computer Entertainment of America’s general liability policy as of April 1.

The suit couldn’t come at a worse time for Sony, which estimates that profits for this financial year will suffer a $128 million loss due to the PSN security breach and investments in additional security. Although it hasn’t been confirmed, Sony cannot rule out the possibility that over 12 million credit card  numbers from PSN users were acquired as a result of the cyber-attacks.

Jul 22, 2011

Source: Reuters

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11 comments

  • bawrash - July 22, 2011 11:18 p.m.

    But isn't the federal investigation deciding if there was negligence. Surely, if they come back and say sonys security was reasonable they'd pay out. plus this is typical insurance company BS.
  • therawski - July 22, 2011 9:46 p.m.

    Insurance companies suck.
  • bmrskate - July 22, 2011 9:44 p.m.

    It's all good! I changed my CC# anyway.
  • crispychicken - July 22, 2011 9:04 p.m.

    I feel bad for Sony.
  • MaelstromKING - July 22, 2011 8:53 p.m.

    This is just getting ridiculous
  • Bitchslapthehomeless - July 22, 2011 8:51 p.m.

    Would someone explain to me why we pay for insurance companies and then they decide not to pay back?
  • burninggears - July 22, 2011 7:51 p.m.

    You mean an insurance company doesn't want to pay their customers back? No way!
  • waffman11 - July 22, 2011 7:43 p.m.

    I don't think that I see why Sony is being sued by Zurich American. Even if Zurich had paid for the suits, that would have been on their own accord, as I don't see how Sony could pressure the company to pay with such flat and definite denial, with evidence to back it up. But from what I can tell, they haven't spent any money on the situation, nor have they lost any public image due to the incident. It seems quite pointless to me.
  • idlemindkiller - July 22, 2011 7:33 p.m.

    Have fun with that Sony.
  • rabidpotatochip - July 22, 2011 7:33 p.m.

    I was reading about this on Slashdot and I can see why the insurance company is saying no. Their argument is that Sony did a really bad job securing their network and shouldn't be covered for such gross negligence. (Disclosure: I do hate Sony BUT I don't think anyone deserves all the crap that has happened here, especially not the users.)
  • TheHowetzer - July 22, 2011 7:32 p.m.

    Figures.

Showing 1-11 of 11 comments

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