Sony PlayStation Network Data Breach: $15 Million Class Settlement for 77 Million Affected Accounts

In April 2011, hackers broke into Sony's PlayStation Network and Qriocity servers over the course of three days, walking away with names, addresses, email addresses, birthdates, login credentials, and in some cases payment card data belonging to roughly 77 million account holders worldwide. Sony suspended network services on April 20, leaving users locked out for approximately 24 days. A separate intrusion hit Sony Online Entertainment the following month. Sony announced the breaches publicly only after the attacks had been contained, drawing immediate criticism that the company had delayed warning consumers whose financial information may have been exposed.

Within weeks of the announcements, plaintiffs' firms across the country filed class action complaints on behalf of PSN subscribers, Qriocity users, and Sony Online Entertainment customers. Sixty-five separate suits were eventually consolidated before Judge Anthony J. Battaglia in the Southern District of California under MDL No. 11-md-02258, styled In re Sony Gaming Networks and Customer Data Security Breach Litigation.

Gayle M. Blatt of Casey Gerry Schenk Franca Villa Blatt and Penfield LLP was appointed to the plaintiffs' leadership committee, joining co-lead and liaison counsel from Barnow and Associates, Robbins Geller Rudman and Dowd, Grant and Eisenhofer, Blood Hurst and O'Reardon, Strange and Carpenter, and the Law Offices of David A. McKay. Together, the plaintiffs' team coordinated discovery and briefing across the sprawling multi-district proceeding.

The central allegations were that Sony had failed to maintain adequate security safeguards for the personal information it collected, that the company delayed disclosing the breach to users, and that affected consumers were left exposed to identity theft and fraud as a direct result. Plaintiffs sought compensatory and injunctive relief for the putative nationwide class.

In July 2014, Sony Computer Entertainment America LLC agreed to a $15 million settlement. Judge Battaglia granted preliminary approval on July 11, 2014, and a final fairness hearing was scheduled for May 1, 2015. The settlement fund provided non-cash benefits, including games, themes, and PlayStation Plus subscriptions for class members who had not already received Sony's earlier "Welcome Back" remediation package, and up to $2,500 per claimant in identity theft reimbursement, capped at $1 million in aggregate across the class. Attorney fees for co-lead settlement counsel were capped at $2.75 million, subject to court approval.