The lawsuit was filed in the Nevada District Court, saying that the two companies did not adequately protect their loyalty programs of customers' information from cyberattacks in September, which could expose them to theft.
On September 21, the Las Vegas law firm Stranct and Jennings and Garvey PLLC and Kopelowitz Ostrow Ferguson Weiselberg Gilbert of Florida filed four lawsuits - two against Caesars and two against MGM. Additionally, a fifth lawsuit was filed against Caesars on September 22 by Reno based O'Mara Law Firm and Chicago based Barnow and Associates.
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These cases represent plaintiffs from different states across the country. The lawsuits argue that the companies knew or should have realized the need to protect their personal information, and that they failed to follow Federal Trade Commission guidelines and industry standards.
Victims suspect that their compromised data may have been sold on the dark web, indicating the high value of personally identifiable information among cybercriminals. All five lawsuits seek damages for victims, including actual, statutory and punitive damages, as well as restitution.
These requirements extend to identifying the benefits companies can gain from data breaches and ensuring that such breaches are avoided in the future. The claims allege negligence, breach of contract and unjust enrichment and all require a jury trial.
Caesars publicly disclosed the cyberattack engineering partnership in a filing with the Securities and Exchange Commission on September 14. The company revealed that an attacker accessed one of Caesars Rewards' loyalty program databases, including driver's licenses and social security numbers, during an incident on September 7.
At the same time, MGM was the victim of a cyberattack on September 11 that led to the disruption of computer systems in some casinos and hotels in the United States.
