April 16, 2024 at 04:44PM
MGM Resorts has sued the FTC and Chair Lina Khan, seeking to halt an investigation into a ransomware attack on their network. The lawsuit claims a conflict of interest as Khan was a hotel guest during the cyberattack. MGM seeks to end the probe unless Khan is recused and challenges the constitutionality of the investigation.
Summary of Meeting Notes:
MGM Resorts has filed a lawsuit against the FTC and its chair, Lina Khan, seeking an end to the regulator’s investigation into a ransomware infection it suffered in September 2023. MGM claims that Khan’s personal involvement during the cyberattack creates a conflict of interest. The lawsuit demands Khan’s recusal from the probe and alleges that the watchdog acted unconstitutionally.
The cyberattack led to significant losses for MGM, totaling at least $100 million. The criminal group Scattered Spider claimed responsibility for the breach, which also targeted Caesars Entertainment hotels and resorts.
The lawsuit asserts that after Khan’s stay at an MGM hotel during the attack, the FTC initiated a comprehensive investigation and made extensive information requests from the resort owner. MGM’s attorneys claim that media reports about Khan’s and her aide’s presence at the hotel led to private lawsuits against the company.
MGM had requested Khan’s recusal due to her personal involvement, but the FTC denied this request. The lawsuit alleges that the FTC’s investigation is tainted by a conflict of interest created by Khan’s personal experiences during the cyberattack. Neither the FTC nor MGM have currently responded to media inquiries for comment.