MGM Challenges FTC’s Cyberattack Investigation in Court

In a recent incident, MGM Resorts International, a prominent gaming and entertainment company, endured a cyberattack by the suspected “Scattered Spider” group in September. The attack disrupted operations for about a week, causing inconvenience for guests and incurring significant financial losses.

The cyberattack resulted in missing amenities and inconveniences for MGM guests, with broader financial implications. The company reported one-time expenses of approximately $10 million and a $100 million dip in its Q3 2023 earnings.

Legal Response to FTC Investigation

Following the cyberattack, the Federal Trade Commission (FTC) launched an investigation and issued a Civil Investigative Demand (CID) in January. The CID requested data related to the incident and additional information unrelated to the cyberattack. MGM attempted to challenge the CID’s validity in February.

In the ongoing conflict between MGM and the FTC, the gaming operator has taken legal action. MGM filed a Complaint for Declaratory and Injunctive Relief against the Commission and its chair, Lina Khan.

MGM contends that its Fifth Amendment rights were violated during the investigation. The company raised concerns about Khan’s involvement in the investigation despite being a guest at one of MGM’s properties during the cyberattack. MGM argues that the FTC’s refusal to disqualify Khan from the case undermines its rights.

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MGM reaffirms its commitment to collaborating with the Federal Bureau of Investigation to identify and prosecute those responsible for the cyberattack. The company asserts its rights under the Fifth Amendment and seeks a fair resolution to the legal dispute with the FTC.


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