MGM Resorts Reaches $45M Settlement Over Data Breaches

Following data breaches in July 2019 and September 2023, MGM Resorts International has consented to pay $45 million as part of a class action settlement. Sensitive personal information, including addresses, driver’s license numbers, dates of birth, and more, was stolen as a result of the breaches, which impacted “tens of millions” of MGM hotel patrons and guests. Online forums are said to have sold some of this information.

The Class Action Lawsuit

The lawsuit, filed against MGM Resorts, was based on allegations that the company failed to implement adequate data security measures. Plaintiffs claimed that the company did not take the necessary steps to protect customer information, leading to the breaches. As a result, the company faced significant legal challenges, and the settlement aims to resolve the class action.

The settlement, which has been given preliminary approval by the U.S. District Court for the District of Nevada, offers compensation to affected customers. Tier 1 Settlement Class members, whose Social Security numbers or military IDs were exposed, will receive $75. Those in Tier 2, with exposed passport or driver’s license numbers, will receive $50. Tier 3 members, whose data was exposed but not to the extent of the higher tiers, will receive $20.

Beyond these payments, all settlement class members are eligible to submit a claim for financial account monitoring, which includes identity theft protection and credit monitoring. Additionally, customers can file for a cash payment of up to $15,000 if they can document losses related to the breach.

Douglas J. McNamara, Partner at Cohen Milstein, commented on the settlement, saying, “On behalf of millions of MGM Resort customers, “I’m very pleased with this settlement. The hotel and entertainment industries are particularly desirable targets for hackers. The same hackers also attacked Caesars Entertainment, Inc. in 2023.”

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MGM Resorts is not the only company to face such data breaches. In a similar attack in 2023, hackers targeted Caesars Entertainment, highlighting the growing threats to the hotel and entertainment sectors.

The post MGM Resorts Reaches $45M Settlement Over Data Breaches appeared first on iGaming.org.

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