Dish Network Corporation (DISH) Made False and Misleading Statements Regarding its Cybersecurity and Information Technology Infrastructure
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Dish Network Corporation (NASDAQ: DISH) securities between February 22, 2021 and February 27, 2023, for violations of the Securities Exchange Act of 1934. Dish, with its subsidiaries, provides pay-TV services in the United States.
According to the complaint, defendants failed to disclose that: (i) the Company overstated its operational efficiency and maintained a deficient cybersecurity and information technology infrastructure; (ii) as a result, the Company was unable to properly secure customer data, leaving it vulnerable to access by malicious third parties; and (iii) the foregoing cybersecurity deficiencies also both rendered Dish’s operations susceptible to widespread service outages and hindered the Company’s ability to respond to such outages.
On February 24, 2023, the Company announced that a “network outage” caused the Company’s websites and apps to cease functioning, subjected customers to authentication issues when signing into TV channel apps using their Dish credentials, and appeared to render the Company’s call center phone numbers unreachable. Then, on February 28, 2023, Dish confirmed that it had “determined that the outage was due to a cyber-security incident and notified appropriate law enforcement authorities,” adding that the “threat agent” behind the ransomware attack stole data from Dish’s compromised systems, potentially containing personal information. On this news, Dish’s stock price fell $0.79 per share, or 6.48%, to close at $11.41 per share on February 28, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Dish. Shareholders who want to act as lead plaintiff for the class must file their papers by May 22, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.