MGM Suit Against FTC Over Cyber Attacks

The cyber attacks in Vegas last year are back in the news, as an MGM suit against the Federal Trade Commission has been filed over its investigation into the matter. Those attacks crippled Caesars and MGM properties, and the suit filed in Washington federal court targets both the FTC and Lina Khan, the FTC chair.

The MGM suit is pursuing “injunctive and declaratory relief” against the FTC. They allege that that the actions taken by the FTC and Khan have infringed upon their rights as guaranteed by the due process clause of the Fifth Amendment. This clause mandates that entities subject to governmental actions are entitled to a hearing before an impartial tribunal. It also ensures equitable treatment under the law.

During the attacks, MGM found itself compelled to shut down specific systems across its properties.  It seems that Khan was actually staying at an MGM property in Las Vegas during the attacks and asked an employee how the company was handling data security, and that employee stated he did not know.

In addition to the MGM suit, the company filed a motion to disqualify Khan based on her “personal involvement in the subject matter under investigation.” Furthermore, MGM disclosed its status as a defendant in 15 consumer class actions, wherein Khan is identified as a potential civil plaintiff and a potential witness.

The FTC rejected both motions on 1 April 2024, leading to the MGM suit. The company stated that “It is fundamentally contrary to the Fifth Amendment’s guarantees of due process and equal protection for the FTC to subject MGM to an investigation premised on regulatory provisions that are inapplicable on their face.”

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