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Proposed Settlement Agreement For Massive 2011 Data Breach At Sony Playstation Network

You may remember the massive data breach in 2011 at Sony Playstation Network (PSN) that affected about 77 million users worldwide. Sony executives apologized to users. Several lawsuits resulted which were combined into a single class-action suit.

InfoSecurity reported that a settlement agreement is pending where Sony would pay about $15 million to users in the United States. Proposed settlement terms:

"... Those who didn’t participate in Sony’s “Welcome Back” package will be entitled to one out of 14 PlayStation 3 or PlayStation Portable games and a choice of three out of six PS3 themes or a three month subscription to PlayStation Plus. However, there’s a $6m limit on these claims... Qriocity users will get a month’s free access to the music streaming service and those who can prove their identity was stolen could receive up to $2,500 in compensation..."

The United Kingdom's Information Commissioner's Office (ICO) fined Sony £250,000 ($395k) in January 2013. The ICO said in a January 2013 announcement:

"If you are responsible for so many payment card details and log-in details then keeping that personal data secure has to be your priority. In this case that just didn’t happen, and when the database was targeted – albeit in a determined criminal attack – the security measures in place were simply not good enough.

“There’s no disguising that this is a business that should have known better. It is a company that trades on its technical expertise, and there’s no doubt in my mind that they had access to both the technical knowledge and the resources to keep this information safe.

“The penalty we’ve issued today is clearly substantial, but we make no apologies for that. The case is one of the most serious ever reported to us. It directly affected a huge number of consumers, and at the very least put them at risk of identity theft."

The proposed settlement has not been approved by a judge, so it is not final. You can read the proposed settlement agreement.

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