Razer sues IT firm Capgemini for over US$7m, wants full compensation for data leak

The civil suit between local gaming products company Razer and IT solutions provider Capgemini began in Singapore’s High Court today (Jul 13) 

Last year, Razer discovered a cybersecurity breach that revealed that the personal information of about 100,000 Razer customers could have been exposed. While no sensitive data such as credit card numbers or passwords were exposed, other data such as order details and shipping information could have been leaked.

Razer is suing Capgemini for at least US$7 million (approximately S$10 million) in losses, and has hired lawyers from Drew and Napier to represent them. Razer contends that a Capgemini employee caused the cybersecurity breach when an issue cropped up in Razer’s internal IT system last June.

The IT system was recommended to Razer by Capgemini. Following the breach, experts appointed by both companies agreed that the breach was caused by a security misconfiguration, and disagreed with Capgemini’s defence that a new IP address could have led to the breach.

Razer has accused Capgemini of shifting blame and failing to take responsibility for the breach. This includes ensuring that its IT systems were secure and that personnel had adequate skill, qualifications, and experience to handle the system.

The bulk of the US$7 million that Razer is suing for accrues from Razer’s claims to around US$6.85 million in loss of profits from its online website, as well as an unquantified sum for loss of profits from the rejection of its digital bank licence application.

Razer is also seeking a declaration that Capgemini pay full compensation for all damages, losses, and expenses incurred and which Razer may incur as a result of the breach.

The trial is set to continue for the rest of the week.

Featured Image Credit: Razer