Dish Network has been slapped with multiple class action lawsuits after it suffered a ransomware incident that was behind the company’s multi-day “network outage.”
These class action lawsuits, filed across different states, allege that DISH “overstated” its operational efficiency while having a deficient cybersecurity and IT infrastructure. The legal actions aim to recover losses faced by DISH investors who were adversely affected by what has been dubbed a “securities fraud.”
Dish sued after ransomware incident
DISH is facing at least five lawsuits seeking to recover losses for Dish shareholders who were adversely affected by the alleged “securities fraud” from February 22, 2021 to February 27, 2023.
The filed complaint alleges that DISH Network attempted to conceal the fact that it maintained “deficient” cybersecurity and IT infrastructure while overstating its operational efficiency.
“…As a result of the foregoing, the Company was unable to properly secure customer data, leaving it vulnerable to access by malicious third parties,” states a court complaint filed by U.S.-based law firm, Levi & Korsinsky, representing the class of plaintiffs.
Other lawsuits bringing identical allegations against DISH include the ones from New York-based Law Offices of Vincent Wong, San Diego-based Robins LLP, Bragar Eagel & Squire, P.C., as well as, Bernstein Liebhard LLP.
“The foregoing cybersecurity deficiencies also both rendered Dish’s operations susceptible to widespread service outages and hindered the Company’s ability to respond to such outages; and… as a result, the company’s public statements were materially false and misleading at all relevant times,” alleges the complaint.
Dish stock crumbled after cyber attack
Around February 24th, American TV giant and satellite broadcast provider, DISH had mysteriously gone offline with its websites and apps ceasing to function for days. What the company had previously dubbed a “network outage,” also hit its subsidiaries, including Boost Mobile.
During this time, multiple DISH employees and associates reached out to BleepingComputer sharing details on what appeared to be a cyber attack at the time.
On February 28th, in an SEC filing first spotted by BleepingComputer, DISH ultimately confirmed it had been hit by a ransomware attack.
In days following the disclosure, DISH continued to struggle bringing its IT systems and the website, Dish.com back up:
Following the news of Dish ransomware attack, the Network’s stock price fell $0.79 per share, “or 6.48%, to close at $11.41 per share on February 28, 2023,” states the complaint.
The company has since continued to battle the widespread disruption to its cyber systems, including the customer portal MyDISH. As a result, the company is advising its customers that they will be receiving a paper bill for the month of March [1, 2].
Investors who suffered a loss because of DISH’s alleged negligence have until May 22, 2023 to join the class of plaintiffs.