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Thursday, 2 June 2011 - All aboard the privacy-breach gravy train |
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    Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Google reveals Gmail hacking, says likely from China 3:31am EDT Casey Anthony told police toddler was kidnapped 01 Jun 2011 Cole not the only sour note for Cowell's 'X Factor' 01 Jun 2011 Special report: If Monterrey falls, Mexico falls | 01 Jun 2011 Basketball world pays homage after "Shaq" quits 01 Jun 2011 Discussed 64 Judge voids controversial Wisconsin union law 62 150 economists back U.S. Republicans in debt fight 53 Speculation grows over Sarah Palin’s 2012 plans Watched Tornado hits Springfield, Massachusetts 2:43am EDT Massive Australian waterspout caught on film Mon, May 30 2011 Scientists revive ancient spider in stunning 3D detail Tue, May 24 2011 All aboard the privacy-breach gravy train Tweet Share this Email Print Related News Privacy group gets part of Google settlement: judge Tue, May 31 2011 Sarkozy's Web initiative faces reality check Tue, May 24 2011 Sony shares up on forecast, but more hacks found Tue, May 24 2011 Sony to post $3.2 billion annual loss on tax write-offs Mon, May 23 2011 BP cuts oil spill burden with $1.1 billion Mitsui deal Fri, May 20 2011 Analysis & Opinion IRS sees staggering jump in identity theft cases Tech wrap: Twitter swallows TweetDeck Related Topics Technology » Media » A man looks at Sony Corp's products at an electronics store in Tokyo May 26, 2011. Credit: Reuters/Toru Hanai NEW YORK | Wed Jun 1, 2011 5:02pm EDT NEW YORK (Reuters) - The hacking of a Sony Corp customer database this spring has attracted class-action lawyers and consumers eager to cash in on the high-profile privacy breach. At least 40 lawsuits have been filed in federal courts -- including at least two this week -- on behalf of millions of Sony PlayStation users, according to Westlaw data. The suits accuse Sony of failing to protect gamers' personal data and credit card information from hackers. The pattern is a common one: Details of a privacy breach become public, which triggers a wave of suits, which lead to oft-costly settlements as companies try to hold onto the trust of their customers. Who benefits the most from the suits? Not the plaintiffs. In privacy cases, it is both difficult to prove economic damage and to divvy up a settlement among classes that can number in the millions or even tens of millions. While a handful of lead plaintiffs might receive a nominal fee, the parties can also agree to distribute any settlement payout to nonprofit organizations that promote the privacy interests of the class. The lawyers, in contrast, walk away with a chunk of change that can range from tens of thousands to millions of dollars. Critics say these settlements deprive the victims of any meaningful benefit and invite conflicts of interest by allowing defendants and plaintiffs' lawyers to choose their pet organizations. For a look at some of the most notable privacy settlements from recent years, and what the settlements were worth to the lawyers and plaintiffs, click on link.reuters.com/qud89r (Reporting by Terry Baynes; Editing by Eileen Daspin) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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