DISH Network Faces Shareholder Class Action Lawsuits After Ransomware Attack
DISH Network Corporation (NASDAQ: DISH), a prominent American television provider and satellite broadcasting company, is currently grappling with several legal challengees from investors who claim that the company issued deceptive and inaccurate statements regarding its cybersecurity measures. These allegations come in the aftermath of a ransomware attack that caused significant service interruptions for millions of the company’s customers. Among the firms initiating legal action against DISH Network is Bernstein Liebhard LLP, which is spearheading one of the lawsuits.
The lawsuit, filed in the United States District Court for the District of Colorado, alleges violations of the Securities Exchange Act of 1934 and has been brought on behalf of investors who purchased or acquired DISH Network securities between February 22, 2021, and February 27, 2023, inclusive (the “Class Period”). DISH Network, along with its subsidiaries, offers pay-TV services in the United States, operating in two segments: Pay-TV and Wireless.
Investors allege that DISH Network made materially false and misleading statements throughout the Class Period. Specifically, the lawsuit claims that DISH Network failed to disclose that the company had overstated its operational efficiency while maintaining a deficient cybersecurity and IT infrastructure. As a result, the company was unable to properly secure customer data, leaving it exposed to unauthorized access by malicious third parties. Additionally, these deficiencies rendered DISH Network susceptible to widespread service outages and hindered its ability to respond effectively to such incidents.
On February 24, 2023, DISH Network experienced a “network outage” that rendered the company’s websites, apps, and call center phone numbers non-functional and caused authentication issues for customers signing into TV channel apps using their DISH credentials. The disruption extended to the company’s subsidiaries, including Boost Mobile.
On February 28, 2023, DISH Network confirmed that the outage was the result of a ransomware attack, notifying appropriate law enforcement authorities. The company disclosed that the “threat agent” behind the attack had stolen data from DISH Network’s compromised systems, potentially containing customers’ personal information.
The disclosure of the ransomware attack had a significant impact on DISH Network’s stock price, which fell $0.79 per share, or 6.48%, closing at $11.41 per share on February 28, 2023.
Investors who suffered losses due to DISH Network’s alleged negligence have until May 22, 2023, to join the class of plaintiffs. As the legal battle unfolds, DISH Network faces the challenge of addressing the lawsuits and rebuilding the trust of its shareholders and customers in the wake of the cyber attack. If you purchased or acquired Dish securities, and/or would like to discuss your legal rights and options please visit DISH Network Corporation Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
References
(n.d.). DISH Network Corporation. Bernstein Liebhard LLP. https://www.bernlieb.com/cases/dishnetworkcorporation-dish-shareholder-lawsuit-class-action-fraud-stock-605/
