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DISH slapped with multiple lawsuits after ransomware cyber attack

Security

Friday, 31 March 2023

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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

At least six law firms are pursuing a class action lawsuit against Dish and 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 civil 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 in the U.S. District Court of Colorado.

Firms representing the plaintiffs include Rosen Law Firm, Levi & Korsinsky, 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:

**DISH Network websites faced a multi-week network outage** (BleepingComputer)

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.

**DISH stock fell after February's ransomware cyber attack**

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.

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About the author

Ax Sharma

Ax Sharma is a Security Researcher and Tech Reporter. His works and expert analyses have frequently been featured by leading media outlets including the BBC, Business Insider, Fortune, TechCrunch, TechRepublic, The Register, WIRED, among others. Ax's expertise lies in vulnerability research, malware analysis, and open source software. He's an active community member of British Association of Journalists (BAJ) and Canadian Association of Journalists (CAJ).