[BreachExchange] Marriott sued hours after announcing data breach

Inga Goddijn inga at riskbasedsecurity.com
Mon Dec 3 10:42:59 EST 2018


https://www.zdnet.com/article/marriott-sued-hours-after-announcing-data-breach/

Hours after announcing a data breach on Friday, two Oregon men sued
international hotel chain Marriott for exposing their data. Their lawsuit
was followed hours later by another one filed in the state of Maryland.

Both lawsuits are seeking class-action status. While plaintiffs in the
Maryland lawsuit didn't specify the amount of damages they were seeking
from Marriott, the plaintiffs in the Oregon lawsuit want $12.5 billion in
costs and losses.

This should equate to $25 for each of the 500 million users who had their
personal data stolen from Marriott's servers in the breach announced last
week
<https://www.zdnet.com/article/marriott-announces-data-breach-affecting-500-million-hotel-guests/>,
on Friday.

   - Marriott faces massive expenses even with cybersecurity insurance
   <https://www.zdnet.com/article/marriott-faces-massive-data-breach-expenses-even-with-cybersecurity-insurance/>

The two Oregon plaintiffs told a local newspaper
<https://www.oregonlive.com/news/2018/12/oregonians-among-first-in-nation-to-sue-marriott-for-data-breach.html>,
that they view the $25 as a minimum value for the time users will spend
canceling credit cards due to the Marriott hack.

The Maryland lawsuit was filed by Baltimore law firm Murphy, Falcon &
Murphy, according to a press release
<https://www.prnewswire.com/news-releases/class-action-lawsuit-filed-on-behalf-of-plaintiffs-whose-sensitive-personal-information-was-stolen-in-breach-of-marriott-servers-300758440.html>
.

Both lawsuits have been filed after Marriott announced a massive data
breach on Friday, revealing that hackers stole the personal details of
nearly 500 million users. The hotel chain didn't say for how many users
hackers also managed to get access to financial data, but the tally can't
be larger than 327 million, according to a Marriott press release.

Guests who stayed at Marriott's Starwood-branded hotels in the past four
years were affected. Starwood brands include W Hotels, St. Regis, Sheraton
Hotels & Resorts, Westin Hotels & Resorts, Element Hotels, Aloft Hotels,
The Luxury Collection, Tribute Portfolio, Le Méridien Hotels & Resorts,
Four Points by Sheraton and Design Hotels.

Other class-action lawsuits against Marriott are expected to be filed in
the coming months. Most of these lawsuits will be merged together to
simplify court proceedings. Such class-action lawsuits usually take years
to reach trial and in most instances end with a settlement. For example, Uber
just agreed to pay $148 million
<https://www.zdnet.com/article/uber-to-pay-148-million-in-settlment-over-2016-data-breach-and-cover-up/>
to
settle a class-action for its 2016 hack, while Yahoo agreed to pay as much as
$85 million for a 2014 hack
<https://www.bankinfosecurity.com/yahoo-class-action-settlement-50-million-plus-sting-a-11635>
that
exposed the personal details of 500 million users
<https://www.zdnet.com/article/yahoo-confirms-data-breach-affecting-500-million-accounts-claims-state-actor-behind-attack/>
.

The Marriott hack is tied for the second biggest hack of all time with this
aforementioned Yahoo hack. The top spot goes to the same Yahoo, but for a
2013 breach
<https://www.zdnet.com/article/yahoo-believes-3-billion-affected-by-2013-hack/>
during
which hackers stole the personal details of three billion users.

Marriott shares saw a maximum 8.7 percent drop after announcing the data
breach, but they are now 5 percent down compared to Thursday's closing
price. Research released in 2017 by Centrify showed that hacks and data
breaches don't have a long-term impact on share prices
<https://www.zdnet.com/article/this-is-how-much-your-shareprice-falls-when-you-get-hacked/>
and
that most companies recover.
Note from the Cyber Risk Analytics data breach research team:  At least 3
additional lawsuits have been filed against Marriott as a result of the
breach. As with similar large breaches, we anticipate these consumer suits
will be consolidated over time.
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