Caesars and MGM face class action over data protection failures

September 26, 2023
By

Cybersecurity incidents perpetrated by hacking groups led to access to customer and employee data, including driver's licenses and social security numbers.

Five class-action lawsuits have been filed in Nevada District Court claiming that both Caesars Entertainment and MGM Resorts International failed to secure personal data of hotel guests and loyalty program members during recent cyber attacks. The claims are being investigated by Stueve Siegel Hanson, a firm that specializes in data and privacy cases.

Firms Stranch, Jennings and Garvey (Las Vegas) and Kopelowitz Ostrow Ferguson Weiselberg Gilbert (Florida) filed two lawsuits against Caesars and two against MGM, while a fifth suit was filed by O’Mara Law Firm (Reno) and Barnow and Associates (Chicago). No firm provided comment on how they plan to represent the plaintiffs, made up of hotel guests from around the country.

The cybersecurity incidents occurred separately and were reported on September 11 by MGM and September 14 by Caesars. Last week MGM also posted on X (formerly Twitter) that its resort services, including gaming floor amenities, were up and running again.

Hackers, part of international groups called Scattered Spider and ALPHV, have claimed to be behind both attacks. Ransomware was used to impersonate an MGM staff member and gain access to the company’s system as a result.

MGM did not publicly or immediately disclose the full nature of the breach or how much data had been compromised, which included financial and personal information of both casino guests and employees. Caesars publicly stated that the cyber attack caused hackers to gain a copy of the Caesars Rewards database, which contains members’ driver’s licenses and social security numbers.

According to local reports, the class action alleges that both Caesars and MGM failed to comply with the Federal Trade Commission guidelines and standards, which could leave victims of the data breach open to identify theft. Two of the suits were filed by Caesars Rewards members.

Stueve Siegel Hanson attorneys are offering free legal consultations for those who believe they may have been affected by the incident.

Caesars has paid a multi-million-dollar ransom, but MGM has not clearly stated whether payment was contemplated.

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