Lawsuit claims Sony fired network security staff before PSN breach

Just two weeks before hackers stole millions PlayStation Network and Qriocity user accounts, Sony Corp laid off employees responsible for network security, according to a recently filed lawsuit.

Reuters reported Friday that the class action lawsuit alleges the company spent lavishly to protect its corporate secrets but was less concerned about customer privacy.

In what was one of the larges security breaches in Internet history, hackers made off with the information from more than 77 million Sony gamers in April. Customers became even more outraged after discovering Sony waited over a week to notify the public.

In subsequent weeks, the number of stolen accounts swelled to over 100 million because of repeated attacks.

The PlayStation Network was finally fully restored in early June, but not before Sony was targeted by lawsuits around the globe. One lawsuit in Canada claimed damages in excess of $1 billion.

The latest lawsuit cites a confidential witness who said that the company laid off "a substantial percentage" of Sony Online Entertainment. Included in the layoffs were "a number" of employees working for Sony's Network Operations Center, the group responsible for preventing and responding to security breaches.

Sony shares tumbled to a two-year low in early June.