MGM Resorts Settles Data Breach Lawsuits for $45M
MGM Resorts Settles for $45 Million Amid Major Data Breaches: What You Need to Know
MGM Resorts has recently agreed to a substantial $45 million settlement to address multiple class action lawsuits stemming from significant data breaches that compromised the personal information of millions of customers. This settlement was finalized on January 21 and is currently awaiting approval from a federal court in Las Vegas, with a decision anticipated by June 18. The breaches have affected over 37 million customers, raising critical questions about data security in the hospitality industry.
The Impact of Data Breaches on MGM Resorts
The two major incidents that led to the settlement reveal the devastating effects of cyberattacks on organizations. The first breach in 2019 involved the theft of customer names, addresses, and phone numbers, with some of this sensitive information later appearing on a cybercrime forum. The more recent ransomware attack in 2023 had far-reaching consequences, disrupting operations at MGM’s Las Vegas properties for several weeks and resulting in over $100 million in financial losses. Additionally, hackers gained access to highly sensitive information, including Social Security and passport numbers.
Settlement Details
Under the terms of the settlement, approximately 30% of the funds will be allocated to cover legal fees. Affected customers may be eligible to receive up to $75 each, depending on the specifics of their compromised data. This resolution seeks to provide some restitution for those impacted by the breaches while highlighting the ongoing challenges related to data security in the digital age.
Why Data Security Matters
The incidents at MGM Resorts underscore the importance of robust data security measures for businesses, especially in sectors that handle sensitive customer information. As cyber threats continue to evolve, organizations must prioritize the protection of their data to maintain customer trust and avoid significant financial repercussions.
Learn More About Data Protection
For more information on data breaches and how to protect your personal information, you can refer to resources from Cybersecurity & Infrastructure Security Agency (CISA) and Federal Trade Commission (FTC).
Share Your Thoughts
What are your thoughts on MGM Resorts’ data breach settlement? Have you ever experienced a similar situation? Share your experiences in the comments below and check out our related articles for more insights on data security and consumer rights.