The lawsuit, filed across several states, asserts that DISH “overstated” its operating efficiency while operating with inferior cybersecurity and IT infrastructure. The objective of the lawsuit is to recover losses suffered by DISH investors who suffered adversities as a result of what has been referred to as "securities fraud."
Dish Sued After Ransomware Incident
After the issue came to light, at least six law firms are now pursuing a class action lawsuit against Dish to recoup losses for Dish stockholders due to the alleged "securities fraud" between February 22, 2021, and February 27, 2023.
The complaint alleges Dish Network of attempting to conceal its operational effectiveness while maintaining "deficient" cybersecurity and IT infrastructure.
"...As a result of the foregoing, the Company was unable to properly secure customer data, leaving it vulnerable to access by malicious third parties," states a court complaint, filed in the U.S. District Court of Colorado.
The law firms representing the plaintiffs include Rosen Law Firm, Levi & Korsinsky, the New York-based Law firm of Vincent Wong, San Diego- based Robins LLP, Bragar Eagle & Squire, P.C., and Bernstein Liebhard LLP.
"The foregoing cybersecurity deficiencies also both rendered Dish's operations susceptible to widespread service outages and hindered the Company's ability to respond to such outages; and... as a result, the company's public statements were materially false and misleading at all relevant times," states the complaint.
Dish Stock Crumbled After Cyberattack
DISH, a major American TV provider and satellite broadcaster, inexplicably went offline around February 24. Both its websites and applications ceased to work for several days. The "network outage" that the company had previously described also affected Boost Mobile.
On February 28, in an SEC filing, DISH eventually confirmed being hit by a ransomware attack.
After the disclosure, DISH continued to struggle for days to restore its IT infrastructure and the website Dish.com. Following the news of the ransomware attacks, the company’s stocks faced repercussions, with stock prices falling $0.79 per share, "or 6.48%, to close at $11.41 per share on February 28, 2023."
Since then, the company has kept up the battle against the widespread disruption to its cyber systems, notably the client site MyDISH. The company is informing its clients that they will be receiving paper bills for the month of March as a result.