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27
Apr
2011

Lawsuits against Sony might be over before they start

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Lawsuits against Sony might be over before they start

If you have been following the news about Sony and its Playstation Network being hacked, you probably have also heard that it did not take very long for Sony to get its first lawsuit. This lawsuit was filed by a Kristopher Johns from Birmingham, Alabama, in which he claims that SCEA failed to properly secure his financial information.

Because of the amount of customers that this breach of security has affected, it is very likely that others will follow Kristopher Johns steps and end up filing cases against Sony. However, recent developments in the judicial system might stop these class-action lawsuits in their tracks.

The Supreme Court gave corporations a major win in Wednesday by ruling a 5-4 decision in which companies can block their disgruntled customers from joining together in a class-action lawsuit. The original ruling was dealing with cellphone companies in California, but will probably become a factor for Sony and it is likely to have national impact.

In the past, customers dissatisfied with a product or service had been free to join a class-action lawsuit if they felt cheated. Customers could combine these small claims into a major lawsuit against the corporation. But due to Wednesday's decision, customers now will not be able to create these major class actions and each claim will have to be dealt with separately.

The disadvantage for customers is that a ban on class actions would prevent lawyers from representing clients for small claims, given that the nature of each case might not have the same gravity or involve the same amount of loss that a class action might involve. Big companies like to deal with customer claims in a case by case basis, because these claims are usually easier to deal with and less costly.

Opposers to the decision claim that the ban on major class actions can become an avenue for big corporations to insulate themselves from liability by cheating a large number of consumers out of individual small sums of money.

With Sony on the brink of facing a good number of individual lawsuits, it has been estimated already that the company could be looking at more than 20 billion dollars paid in damages to their customers. We can see how these recent development in the judicial system might have an impact on what is to come to the gaming giant. Let us know what you think about this and the whole PSN situation by leaving a comment below.



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Comments

0 AmericanPuppet 2011-05-11 11:51 #5
Quoting plmko:
Quoting wiifan:
Saved by the bell. This is ridiculous legislation to protect large corporations. The same ones that pad the pockets of these appointed peoples. They are absolutely not looking out for the publics best interests with this decision. Wonder how big their kickbacks will total by the end of one year. Bet five of those people got brand new PS3 consoles. ;-)


Lol you don't even have the slightest clue how the supreme court functions.


Sounds like you are the one who needs a lesson on supreme court rulings if you don't think this can have an impact on ALL Class suits in the future.

I hope you aren't another corporate polisher/ps3 defender fanboy who can't see past this toys. How much more protection does big business need?
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0 AmericanPuppet 2011-05-11 11:47 #4
Fine. Then I will just sue you with a lone lawsuit. Now you are dealing with 100's of lawyers and potentially hundreds of suits all of which will HAVE TO BE ANSWERED because if you don't show up to court you lose the decision. The courts and big corporations are not going to intimidate me.

Why customers/employees/citizens are so willing to give up their rights to collectively bargain & complain is crazy. You deserve the toilet America has become. Go after the abuse, but think of the Class Acts like Espestos, Tabacoo, Car recalls that have benefited the consumer due to a large voice comprised of many small ones.

This is a win for big business and a loss for every consumer.
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0 @wiifan 2011-04-27 23:14 #3
the ruling wasnt made for sony, it was made for cell phone companies. sony has nothing to do with the legislation, but if it can help them then theyre going to use it
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-1 plmko 2011-04-27 22:16 #2
Quoting wiifan:
Saved by the bell. This is ridiculous legislation to protect large corporations. The same ones that pad the pockets of these appointed peoples. They are absolutely not looking out for the publics best interests with this decision. Wonder how big their kickbacks will total by the end of one year. Bet five of those people got brand new PS3 consoles. ;-)


Lol you don't even have the slightest clue how the supreme court functions.
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+1 wiifan 2011-04-27 22:08 #1
Saved by the bell. This is ridiculous legislation to protect large corporations. The same ones that pad the pockets of these appointed peoples. They are absolutely not looking out for the publics best interests with this decision. Wonder how big their kickbacks will total by the end of one year. Bet five of those people got brand new PS3 consoles. ;-)
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