Written by Kevin McGinty
Reuters reports that there are now at least 25 separate class actions pending against Sony in connection with the theft of PlayStation Network (“PSN”) customer data. Reuters further reports, however, that the PSN class actions appear to have a doubtful likelihood of success because, as noted in a previous entry in this blog, data breach plaintiffs often have difficulty proving that they have sustained damages as a result of data theft. The report indicates, however, that data breach class actions may continue to proliferate due to the confluence of increasing corporate custody of customers’ personal information (a trend that is likely to increase as cloud-based applications become more popular) and recent court decisions that have made it more difficult for plaintiffs to bring other types of consumer class action claims.
In addition, two plaintiffs' law firms are seeking to consolidate cases and are seeking multidistrict litigation ("MDL") approval. The MDL petition cites 18 cases: 10 in California's Northern District, four in the Central District, one each in New York's Eastern and Southern Districts, one in the Eastern District of Michigan and one in the Southern District of Texas. See the article in Daily Business Review for more.