Sony settles federal suit with former employees, avoids class action

Sony Pictures Entertainment sidestepped a class action suit by reaching a settlement with former employees whose information was exposed in a high-profile breach.
Sony Pictures Entertainment sidestepped a class action suit by reaching a settlement with former employees whose information was exposed in a high-profile breach.

On the cusp of a hearing to determine whether a lawsuit against Sony Pictures Entertainment should be turned into a class action suit, the company has reached a settlement with nearly 50,000 former employees after a breach exposed their personal information online.

No details regarding terms were included in a filing in federal court, according to a report in the Wall Street Journal, although more information is expected to be revealed in a formal settlement likely to be filed in mid-October.

“We believe the proposed settlement is a favorable resolution of the claims asserted by the plaintiffs,” the WSJ quoted attorney Daniel C. Girard as saying.

The breach kept many of Sony's systems down for an extended period and raised the specter of the attack being the handiwork of North Korea, prompting President Obama to promise retaliation in kind, eventually imposing sanctions.

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