Sat, Jul 23, 2011 | 22:59 BST
PSN breach spawns 55 class-action suits, Sony insurer to not pay legal fees
Sony’s insurance company, Zurich American, has filed a claim in New York asking to be except from paying to defend the firm over 55 class-action suits filed against in over the PSN data breach earlier this year.
According to Reuters, the insurer said it received claims for coverage from Sony, but under the policy written for the firm, it does noth ave any “obligation to defend any other Sony unit under that primary policy, ” since the policy does not apply to the PSN side of the business.
Zurich American said the policy only covers Sony for “bodily injury, property damage or personal and advertising injury,” and since the class-action lawsuits were not filed under these stipulations, it should not have to cover the firm’s legal expenses.
Furthermore, the insurer claimed the general liability policy it wrote for Sony was “never intended to cover digital attacks.”
Sony said in its last financial report, it expects profit to drop by 14 billion yen ($178 million) due to the cost of revamping its security measures after the breach.