Sony faces court battle with insurer

Zurich American Insurance says it is not responsible for payout after Sony hacks

Sony is facing a court battle with Zurich America Insurance who says it is not responsible for payouts to Sony users who were affected by the Sony hacks.

Sony is facing a court battle with Zurich America Insurance who says it is not responsible for payouts to Sony users who were affected by the Sony hacks.

Published Sunday, 24 July 2011
By Georgina Enzer

Sony is facing a court battle on how it will pay for legal claims against the company in the wake of the huge data breach, which saw over 77 million Sony online users' data stolen, according to the BBC.

One of Sony's insurers, Zurich American Insurance, has asked a judge in New York to rule that it is not liable for losses related to the cyber attack.

Legal papers filed by the insurance company show that 55 different class action lawsuits are pending in the US because of the breach.

Sony has made insurance claims on several of its insurance policies, including with Zurich, to help pay its legal bills and provide compensation to Sony Network user affected by the hacks.

But, Zurich is arguing that the policy it set up for Sony does not cover the part of the business that suffered the breach or the sort of damage the theft caused. It also said that specific clauses in the policy rule out it providing cover, Sony declined to comment because the matter is the subject of pending litigation.

Investigations by US state and federal agents are also underway and could lead to more court cases for Sony.

Sony said it expected costs for the breach to top $177.6m this year; this figure does not include any costs for compensating customers.

Sony had agreed to pay anyone who had financial losses due to the cyber-attack, but it is still being sued by a number of users.