A pending class action lawsuit against Dish Network claims the pay TV company had inadequate cybersecurity policies and practices for at least two years.
The lawsuit, announced by the legal firm Levi & Korsinsky, claims Dish’s weak computer security policies essentially opened the door for hackers to take over the company’s systems earlier this year, a situation that resulted in Dish’s customer support and billing websites going offline for several weeks.
The lawsuit seeks class action status on behalf of Dish stockholders who were misled into believing the company had adequate cybersecurity protocols in place, with the firm alleging Dish “made false statements” that concealed its “deficient cybersecurity and information technology infrastructure.”
“[Dish] was unable to properly secure customer data, leaving it vulnerable to access by malicious third parties,” a statement from Levi & Korsinsky alleged. “[The] cybersecurity deficiencies also both rendered Dish’s operations susceptible to widespread service outages and hindered the company’s ability to respond to such outages.”
Shareholders who believe they suffered a financial loss because of the cybersecurity incident have until May 22 to request that a federal court overseeing the pending lawsuit appoint them as lead plaintiff. If the case achieves class action status, shareholders who aren’t named as the lead plaintiff can participate in the case and collect any settlement or financial penalty imposed without having to pay out-of-pocket legal fees.
The lawsuit covers any losses incurred between February 22, 2021 and February 27, 2023, with the immediate case only applying to those who held positions in Dish during those two years (in other words, Dish subscribers who suffered financial loss aren’t eligible to participate in this case). For more information, click or tap here.