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