Victims of a recent cyberattack targeting Rivers Casino Philadelphia have banded together and launched a class action lawsuit against the operators. The plaintiffs allege that Rivers Casino lacked sufficient consumer safeguards, indirectly granting hackers access to potentially harmful personal data. With the case now allowed to proceed, the company could be in for a lengthy legal battle.
The Data Breach Was Not Insignificant
The cyberattack that led to the lawsuit occurred in January when an unauthorized entity accessed and possibly obtained files from the Rivers Casino Philadelphia servers. While the operator has not shared the exact extent of the breach, it notified potentially affected customers, warning them that their personal information may have been compromised.
Some of the affected customer information could extend to names, Social Security numbers, and bank account information. According to the lawsuit, Rivers Casino’s failure to protect such sensitive information could violate consumer protection and privacy laws. It may also have led to attempts at potential identity fraud targeting some of the affected customers.
Law firm Levi & Korsinsky, LLP immediately seized the opportunity, notifying affected customers that they could participate in a class action lawsuit against Rivers Casino with no cost to themselves. This approach is fairly common, as law firms aim to gain a portion of the compensation or settlement funds. It also means that Levi & Korsinsky is confident that it stands a chance in court.
The Negligence Charges Remain Standing
Judge Joshua D. Wolson of the US District Court for the Eastern District of Pennsylvania agreed that the plaintiffs had adequately pleaded a claim of negligence. He noted that Rivers Casino had a duty to exercise reasonable care in protecting that information, which it allegedly failed to do. Furthermore, several plaintiffs reported increased attempts at fraud, making their accusation plausible.
Plaintiffs have plausibly alleged that Rivers failed to exercise reasonable care in safeguarding their personal information.
Judge Joshua D. Wolson
However, Judge Wolson dismissed all other allegations, such as breach of contract, unjust enrichment, invasion of privacy, and breach of confidence. He noted that the plaintiffs did not present sufficient evidence to support these claims. However, he ultimately denied Rivers Casino’s motions to dismiss the negligence claim, meaning that the lawsuit will proceed.
With cyberattacks increasingly common, casinos have to deal not only with the impact on their own operations, but also with potential lawsuits from disgruntled customers. It remains to be seen whether Rivers Casino will press on with the proceedings or settle the case. In any case, this development serves as a reminder to the broader industry that investing in robust cybersecurity is often cheaper than dealing with the potential fallout.