Sony insurer seeks PlayStation Network hack opt-out
- 22 July 2011
- From the section Technology
Sony faces a court battle over how it will pay for legal claims made in the wake of a massive data breach.
One of the company's insurers has asked a judge to rule that it is not liable for losses related to the cyber attack.
In April, Sony discovered that hackers had gained access to 77 million accounts on its PlayStation Network.
The firm agreed to pay anyone who lost-out financially as a result of the incident, but it is still being sued by a number of users.
PlayStation Network was shut down worldwide for more than a month while Sony reviewed its security procedures.
Zurich American Insurance has now gone to court in New York seeking a declaration that it does not have to help Sony with current or future legal action related to the data breach.
Legal papers filed by Zurich reveal that 55 separate class action lawsuits are pending in the US because of the breach.
Also underway are investigations by state and federal regulators that could also end-up before the courts.
Sony has made claims on several of its insurance policies, including one with Zurich, to help pay its legal bills and provide compensation.
However, Zurich argues that the policy it set up for Sony does not cover the part of the business that suffered the breach or the sort of damage the theft caused.
Specific clauses in the policy also rule out Zurich providing cover, it said.
Sony declined to comment because the matter is the subject of pending litigation.
In financial statements, Sony said it expected costs for the breach to top 14bn yen (£109m) this year. The figure does not include any costs for compensating customers.