US television provider Dish Network is facing multiple collective claims after being hit by a cyberattack known as the Mount Program. The resulting shutdown of the network has prompted investors to seek compensation.
Lawsuits have been brought against the company, with shareholders alleging losses due to “fraud with securities” between 22 February 2021 and 27 February 2023. Claims filed in different states allege that Dish failed to inform investors that it had weak cybersecurity and IT infrastructure, and downplayed the level of its operational efficiency. This, in turn, made customer data vulnerable to third parties.
The cyberattack on Dish’s network was initially detected on 24 February, which led to a major disruption of the company’s websites and applications for several days. The company confirmed that the incident was caused by the Mount Program a few days later, and continues to work on the restoration of its IT systems and website. Other subsidiaries, such as Boost Mobile, were also impacted by the incident.
Following news of the attack, Dish’s share price fell by 6.48% to $11.36 per share on 28 February. At present, the company is still working to restore its systems, including the MYDISH client portal.