Dish Network faces multiple class action lawsuits for allegedly making “materially false and misleading statements” tied to a crippling February ransomware attack.
The lawsuits, filed by six law firms on behalf of individual investors, claims that Dish Network has overstated its operational efficiency and cybersecurity infrastructure resiliency since 2021. They claim Dish Network’s understatement of both resulted in financial losses to investors when the company hit with a cyberattack in February.
The legal actions seek to recover damages for investors who purchased or acquired Dish Network securities between Feb. 22, 2021 and Feb. 27, 2023. Following the confirmation of the ransomware attack, Dish Network’s stock price slumped 6.48% to close at $11.41 per share on the same day.
The initial attack on Feb. 24, 2023 caused widespread network outage impacting Dish Network consumer apps, websites and its internal billing systems. The company initially claimed it was “a system issue.” But in a SEC filing on Feb. 28, Dish Network confirmed that the outage was a result of a ransomware attack.
“As a result of Defendants’ [Dish Network] wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff [investors] and other Class members have suffered significant losses and damages,” stated one of the class action complaints filed with the United States District Court for the District of Colorado by Rosen Law Firm.
That complaint alleges that Dish Network has operated its business with “fraud and deceit” misleading investors and customers starting