June 28, 2024 2 min read

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FTC Dismisses MGM’s Legal Challenge to Its Investigation

The fallout of the devastating cyberattacks continues to haunt the casino and hospitality giant

The Federal Trade Commission (FTC) has dismissed MGM Resorts’ challenge to an investigation into its data security protocols. While the casino and hospitality powerhouse alleged due process violations, the FTC filed a motion to dismiss these claims.  

For context, the FTC issued a civil investigative demand (CID) into the operator’s business in the wake of the data breaches it suffered recently. Between 2019 and 2023, MGM Resorts’ systems were compromised on three separate occasions, resulting in leaked customer information.

However, MGM Resorts refused to comply with the demand, instead launching a lawsuit in which it sued the FTC in the DC District Court over alleged due process violations.

The FTC was unfazed by this and filed a motion to dismiss the claims. According to the commission, the DC District Court lacks the jurisdiction to hear MGM’s claims. Additionally, the FTC added that MGM has failed to “invoke a cognizable cause of action or state a plausible claim for relief.”  

Last but not least, the commission noted that MGM’s allegations do not constitute due process violations.

The FTC concluded that MGM had simply refused to comply with the demand and preemptively sued the commission. MGM’s suit fails, however, both for lack of subject matter jurisdiction and for failure to state a claim for relief.

Simply put, MGM has refused to comply with the demand. Instead, MGM preemptively sued the Commission for pre-enforcement declaratory relief.

FTC statement

MGM Is Still Coping with the Cyberattacks

As mentioned, MGM suffered a chain of devastating cyberattacks, the last of which came in September 2023. As customer data was compromised, regulators became concerned with the company’s safety protocols and its ability to protect its consumers.

Players were just as concerned with some filing lawsuits against MGM, accusing the company of allowing the hackers to steal their personal information. The last such suit was filed by the personal injury law firm THE702FIRM Injury Attorneys, which claimed that BlackCat hackers caused irreparable damage to the MGM loyalty program’s members.

While high-profile members of Scattered Spider, the group believed to be behind the September 2023 attack, were eventually arrested, MGM Resorts is still struggling to recuperate.

Journalist

Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at GamblingNews.com is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.

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