Class-action lawsuits have been lodged against MGM Resorts International and Caesars Entertainment in the wake of recent cyberattacks.
The prominent casino operators are facing allegations of ineffective cybersecurity measures, purportedly leaving their customers vulnerable to data breaches.
Filing a class-action lawsuit allows a large group of individuals with similar grievance against these cyber threats to consolidate their legal actions for a more cost-effective and efficient judicial process.
Individuals affected by inadequate data protection measures taken by the defendants can seek legal recourse through these lawsuits.
A total of five lawsuits have been registered against Caesars and MGM Resorts at the Nevada District Court, with another one filed in New Jersey.
These legal proceedings aim to secure monetary compensation for victims and future assurance against data security lapses.
Claims under consideration
The lawsuits contend that both MGM and Caesars failed to safeguard the personal identifiable information (PII) of their customers, particularly of their loyalty programme patrons, potentially exposed during the cyberattacks.
Furthermore, the lawsuits assert that the companies did not effectively disclose these breaches, leaving customers unaware of potential vulnerabilities in the future regarding the security of their personal information.
Many of the victims fear that their stolen data has already made its way onto the dark web, where personal identifiable information commands significant value, with prices ranging from $40 to $200 for stolen identity credentials.
The lawsuits aim to extract restitution, actual, statutory, and punitive damages, including any profits that the entities may have accrued from the misused data. All cases enlisted so far are requesting a jury trial.
Elsewhere, legal firms are taking proactive steps to assist potential victims. For example, Kansas City-based law firm Stueve Siegel Hanson is now offering free legal consultations to individuals who may have been impacted by the data breach.
Consequences of the cyberattacks
Caesars confirmed that it fell victim to a cyberattack on 14 September.
The company’s investigation revealed that the attacker had obtained a copy of the Caesars Rewards loyalty programme database, which contains sensitive information such as driver licence and Social Security numbers.
A substantial ransom was reportedly paid by Caesars to restore its systems following the attack.
MGM Resorts, meanwhile, incurred significant disruption when it detected a security breach, prompting it to shut down some of its computer systems on 11 September.
This security measure affected several operations including booking and reservation systems, and notably, the functioning of gaming machines on casino floors.
Hacker groups ALPHV and Scattered Spider later claimed responsibility for the breaches.
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