Sony is being sued over the Playstation Network data breach. Image from Wikimedia Commons.

The data breach of the Sony Playstation Network has exposed millions of users to possible identity theft. Experts call it one of the biggest data hacks in recorded history, possibly opening 77 million people up to identity theft, and Sony is scrambling to fix the problem. The company has been slapped with a class action lawsuit over the incident.

Class action suit filed against Sony over Playstation Network breach

Sony has been named in a class action lawsuit concerning the data breach of the Playstation Network, according to InformationWeek. A suit was filed in Calif. against the Sony Corporation, on the behalf of all users of the Playstation Network, or PSN. The suit alleges that Sony failed to adequately shield its users from potential threats. The suit also claims that Sony was not compliant with Payment Card Industry (or PCI) standards of security, part of which is not storing customer credit card numbers and account information. Sony initially shut its Playstation and Qriocity networks down about a week ago, after noticing an “external intrusion,” according to the New York Daily News. Sony later disclosed that the networks had been hacked.

Data at risk

There are more than 77 million people that are members of the Qriocity network and the Playstation Network. Sony released a statement saying that customers that had provided their credit card data through either network might have been obtained by hackers. There is no confirmation that any information has been obtained or identities used for fraudulent purposes, but it is possible. Information security experts, according to USA Today, consider it among the biggest data hacks on record. In response to the breach, investigations have been launched by the British and American governments, according to Reuters, to see just how big the breach was and the extent of the damage done. Sony is currently retooling both networks.

Users are recommended to take steps to ensure security

The data that hackers were able to obtain, according to the Wall Street Journal, includes their name, date of birth, address, email address, Sony network identity, account history and credit card information. Normally, credit card thieves can only get card numbers, but that much information is a rare find for an identity thief. Playstation and Qriocity network users should change all of their passwords immediately. Any email or message from Sony asking for any of the information they would already have should be deleted, as it is a scam email. As far as credit or debit cards are concerned, card holders should closely monitor their accounts and contact their bank or credit union and notify them immediately of any charges they believe to be fraudulent.

Sources

New York Daily News

Information Week

Reuters

USA Today

Wall Street Journal

WalMart and global warming are the subjects of two lawsuits heading to the Supreme Court. Image from Wikimedia Commons.

The Supreme Court has added cases to its docket concerning Walmart and global warming. The retail giant is being sued for gender discrimination regarding procedural issues. In the global warming suit, the state of Connecticut is taking action against a power plant.

Walmart goes to Supreme Court to roll back lawsuit

The Supreme Court has agreed to hear cases concerning a Walmart lawsuit and a global warming case, according to CNN. Walmart is being sued for gender discrimination  against women in hiring and promotions. The question is whether the suit can be filed as a class action, a lawsuit is brought by a collective body or “class,” of plaintiffs or against a collective body of defendants. If so, it may be the largest suit of its type ever filed, as there are 1.6 million plaintiffs in the case, officially Dukes v. Wal-Mart Stores Inc. The lawsuit alleges that Walmart, as a corporate entity, discriminates against female employees by paying lower wages and by not promoting many female workers to management positions.

Global warming also on the docket

The Supreme Court has also agreed to hear a case over global warming, according to the Los Angeles Times. The global warming lawsuit, American Electric Power v. Connecticut, is being appealed to the high court to determine whether courts and legislatures can place limits on carbon emissions. The state of Connecticut, along with New York, California and eight other states, are suing American Electric Power for emissions from coal power plants. The court is being asked to decide whether carbon emissions can be labeled a public nuisance.

More huge issues

Depending on exactly what happens with the battle over Proposition 8, the highest court in the country may end up having to decide if banning gay marriage is constitutional before too long. The Ninth Circuit Court of Appeals is currently hearing the Prop 8 case.

Sources

CNN

Los Angeles Times

One of many Cash Store locations, this one yet to be opened for business. (Photo: Sign-Tech Electric)

A Wisconsin appeals court has ruled that the Cash Store cannot use language in its loan contracts that bars customers from the right to be able to file or join class action lawsuits, reports the Associated Press. Such verbiage has often been found in the fine print of contracts that Cottonwood Financial LTD (parent company of The Cash Store) uses. The court deemed the business practice “unconscionable” and said it violates the Wisconsin Consumer Act.

Class action ban protects consumers

The statement regarding class action comes according to New Richmond, Wis., consumer rights attorney Eric Crandall. He told the AP that a lender like the Cash Store could be “easily annihilated” by the damages awarded in such a class action. At the very least, the class action ban should cause The Cash Store to change its contract language immediately. Considering the trouble the franchise has had in Georgia and New Hampshire over the past year, it seems unlikely that the Cash Store will resist the ruling.

Governor Jim Doyle’spersonal loans law will begin in December

Starting Dec. 1, personal loans in Wisconsin must be limited to $1,500 or 35 percent of a borrower’s income. Furthermore, only one rollover per existing loan will be allowed. Doyle’s move also banned post-maturity interest on personal loans of 91 days or longer.

It began with Darcie Estes

According to reports, Darcie Estes borrowed $1,400-plus from a Hudson, Wis., Cash Store to help pay her mortgage and other bills. Estes defaulted on her loan, which left her in the position of owing more money. Cottonwood Financial LTD took her to small claims court in 2007 to collect the balance owed, to which they had the legal right. Estes was represented by Eric Crandall, who helped her file a counterclaim regarding the anti-class action clause. They sought damages and attorney’s fees. The Pierce County judge at the time ruled that Estes had waived her right to a jury trial based upon what was in the contract. The subsequent appeal overturned this ruling.

Class actions – are they that great to begin with?

There are various theories regarding whether class actions actually help the class proponents (the parties that filed the suit). Cottonwood Financial LTD and the Cash Store were deemed to be in violation of the Wisconsin Consumer Act, hence there may have been good reason for Darcie Estes and the rest of the class to file against them. However, as the legal blog Class Action Lawsuits: Putting People Together suggests, the claimants are rarely the people who derive the most benefit from a class action. Usually the lawyers end up with most of the money, a fact that has spawned a lifetime of resentful jokes on their behalf.

Sources:

Associated Press

“Class Action Lawsuits: Putting People Together” (How they REALLY work)

“Class Action Lawsuits: Putting People Together” (The squeaky wheel gets the grease)

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