Dish Network has been slapped by multiple class action lawsuits after suffering a ransomware incident that was behind the company’s multi-day “network outage”.
These class action lawsuits, filed in different states, allege that DISH “overstated” its operational efficiency while having deficient cybersecurity and IT infrastructure. The lawsuits seek to recover losses suffered by DISH investors who were harmed by what has been described as “securities fraud”.
DISH sued after ransomware incident
DISH is facing at least five lawsuits seeking to recover losses from Dish shareholders who were harmed by the alleged “securities fraud” from February 22, 2021 through February 27, 2023.
The filed complaint alleges that DISH Network attempted to conceal the fact that it maintained “deficient” cybersecurity and IT infrastructure while exaggerating its operational efficiency.
“…Due to the above, the company has been unable to properly secure customer data, leaving it vulnerable to access by malicious third parties,” States a complaint filed by the American law firm Levi & Korsinsky, representing the group of plaintiffs.
Other lawsuits with identical allegations against DISH include those of Law Firms of Vincent Wong based in New Yorkbased in San Diego Robins srl, Bragar Eagel & Squire, CPas well as, Bernstein Liebhard LLP.
“The aforementioned cybersecurity vulnerabilities also made Dish’s operations susceptible to widespread service disruptions and hampered the company’s ability to respond to such disruptions; and…as a result, the company’s public statements were materially false and misleading at all relevant times,” the complaint alleges.
The dishwashing stock collapsed after a cyberattack
Around February 24, US television giant and satellite streaming provider, DISH, mysteriously went offline, with its websites and apps shutting down for days. What the company previously called a “network outage” also affected its subsidiaries, including Boost Mobile.
During this time, several DISH employees and associates contacted BleepingComputer share details of what appeared to be a cyberattack at the time.
On February 28, in a Filing with the SEC first spotted by BleepingComputer, DISH finally confirmed that he was hit by a ransomware attack.
In the days following the disclosure, DISH continued to struggle to bring up its computer systems and the Dish.com website:
Following news of the 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,” the complaint reads.
The company has since continued to battle widespread disruption of its cyber systems, including the MyDISH customer portal. Accordingly, the company advises its customers that they will receive a paper invoice for the month of March [1, 2].
Investors who suffered a loss due to DISH’s alleged negligence have until May 22, 2023 to join the class of plaintiffs.