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Sony Begins to Tally Its Financial Loss From Hack: $15 Million and Counting

Sony says it doesn't expect the cyber attack to materially impact its fiscal year, which ends in March.

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Sony has begun to disclose the financial toll of the crippling cyber attack on Sony Pictures Entertainment.

The disruptions caused by the November hack on the U.S.-based film and TV group forced the Tokyo corporation to delay reporting of its December quarter results, because Sony Pictures was unable to close its financial books within the required timeframe.

Sony provided a forecast of its results Wednesday, which, for the first time, began to provide a financial accounting of the damage caused by the cyber assault.

The film group reported it has incurred about $15 million in investigative and remediation costs related to the attack on its corporate networks, which pilfered private emails and confidential business documents, and destroyed computers.

Numerous press reports recount how the studio was taken back to the digital Stone Age, with its payroll department cutting checks manually and executives resorting to a form of mobile communication that had fallen out of vogue in Hollywood: BlackBerrys.

Sony told investors the cyber attack will likely not materially impact its results for the fiscal year that ends March 31. However, it warns that it might not be able to anticipate and manage the cyber security risk, “including the risk of potential business disruptions or financial losses.”

Other corporations that have been subject to breaches faced steep bills. Target reported the price tag for its 2013 breach would reach $148 million (with $38 million offset by insurance), while TJX’s 2007 hack will cost about $250 million.

Former employees of Sony Pictures Entertainment have filed four lawsuits against the company following the massive security breach. The suits allege the film group failed to adequately safeguard its networks against cyber intrusions.
This article originally appeared on Recode.net.