MGM Resorts to Settle Data Breach Lawsuit for $45 Million Payout
A settlement worth $45 million has been agreed upon by MGM Resorts International to compensate individuals affected by two significant data breaches in 2019 and 2023. The breaches allegedly resulted from the company's data security failures.
Tiered Cash Payments for Eligible Members
The MGM settlement offers cash payments based on the type and extent of data compromised. Class members are eligible for the following cash amounts:
- $75 for Social Security or military ID numbers exposure
- $50 for stolen passport or driver's license details
- $20 for names and birth dates disclosure
Out-of-Pocket Losses and Insurance Coverage
Class members can also claim up to $15,000 for documented financial losses due to fraud, credit monitoring, or identity theft. The settlement includes complementary financial account monitoring with identity theft protection for one year and up to $1 million in insurance coverage.
Significance for the Hospitality Industry
The settlement sets a precedent for the hospitality sector, pushing companies to focus on enhancing cybersecurity measures and data protection. MGM's case highlights the necessity of adhering to data protection regulations, improving transparency, and responding rapidly to data incidents to maintain customer trust.
Financial Impact and Industry Standards
The financial burden of such settlements can be substantial, prompting companies to carefully assess and manage their investments in data security to minimize potential costs of litigation and settlements. The MGM case may influence industry standards for handling and securing sensitive customer data, with other companies adjusting their practices to avoid similar lawsuits.
In conclusion, the MGM data breaches settlement underscores the critical need for robust cybersecurity and compliance within the hospitality sector, protecting both customer data and companies' reputations.
- In Las Vegas' thriving casino-and-gambling scene, the recent MGM Resorts International settlement of $45 million serves as a reminder of the importance of robust cybersecurity measures in casino-games establishments like casinos, where sensitive personal information is often involved, just like in poker or slot machines.
- The MGM settlement, stemming from the data breaches in 2019 and 2023, could mark a shift in the casino-culture, as companies within the hospitality sector are urged to prioritize data protection, emulating MGM's renewed focus on adhering to data protection regulations, improving transparency, and responding rapidly to data incidents to maintain customer trust.
- As casinos continue to evolve and cater to customers seeking entertainment in Las Vegas or any other city, it is essential for these establishments to recognize the value of properly securing sensitive customer data, not only to protect their financial records but also to safeguard their reputations within the casino-games industry.
