Numerous class action lawsuits have been filed against Dish Network following the ransomware attack that caused an extended network outage for its customers
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Several class action lawsuits, filed in various states, allege that DISH exaggerated its operational efficiency while maintaining inadequate cybersecurity and IT systems. The lawsuit seeks to recover damages suffered by DISH shareholders due to an alleged “securities fraud.”
Currently, at least six law firms are preparing a class action lawsuit against Dish in an attempt to recover the losses of those who held shares of the company between February 22, 2021, and February 27, 2023 and were affected by the alleged fraud.
A lawsuit filed against DISH Network alleges that the company concealed its “deficient” cybersecurity and IT infrastructure while exaggerating its level of operational efficiency.
“…As a result of the above, the Company was unable to properly secure data customer access by malicious third parties,” states a court complaint filed in the U.S. District Court of Colorado.
The plaintiffs have been represented by several firms, including Rosen Law Firm, Levi & Korsinsky, The New York-based Law Offices of Vincent Wong and Robins LLP of San Diego. In addition, Bragar Eagel & Squire PC, along with Bernstein Liebhard LLP, are also participating in this legal case.
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“Previous cybersecurity also made Dish’s operations vulnerable to widespread outages and hindered the Company’s ability to respond to them … as a result, the Company’s public statements were materially false and misleading,” the complaint alleges.
On February 24, many DISH customers were surprised to discover that its websites and apps had suddenly stopped working. For days afterward, millions of people were left without access to their favorite entertainment source. The “network outage,” as the company previously described it, also affected its subsidiaries, including Boost Mobile.
The company's stock price had declined by 6.48%, falling from $11.41 to $0.79 per share on February 28, 2023, as noted in the complaint document.
The company continued to battle the widespread cyber-attack on its systems, including its MyDISH customer portal. As a result, the company informed its customers that they would receive a paper bill for March.
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Investors who have suffered financial loss due to DISH's alleged negligence must take action by May 22, 2023, in order to be included in the class of plaintiffs.
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