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Razer wins lawsuit against Capgemini, awarded US$6.5 million in damages

Yahoo Finance Singapore
·2-min read
In this photo illustration, a Razer Inc. logo is seen on a smartphone screen and in the background.
In this photo illustration, a Razer Inc. logo is seen on a smartphone screen and in the background. (PHOTO: Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) (SOPA Images via Getty Images)

By Tria Dianti

SINGAPORE – The High Court on Friday (9 December) ruled in favour of gaming hardware company Razer in its data breach lawsuit filed against IT services company Capgemini.

The Straits Times reported that the court awarded Razer US$6.5 million (S$8.7 million) in damages.

Order details and shipping information of thousands of customers around the world were leaked in September 2020. Razer sued its vendor, Capgemini, in the same year over the breach.

Due to the incident, the company, which is headquartered in the United States and Singapore, suffered a loss of US$6.1 million in profits from its e-commerce platform. Besides this, the damages payable also include US$60,000 for services of forensic experts who investigated the breach, US$320,000 for a law firm to deal with regulators and US$2,000 for security consultant Bob Diachenko who discovering the breach.

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Diachenko had reportedly alerted Razer to the breach on 19 August 2020. On 11 September, Razer said customers' credit card numbers and passwords were not compromised.

Razer, the Straits Times reported, said a configuration error occurred during a 16-minute window on 18 June 2020, when former Capgemini employee Argel Cabalag added a "#" command to a configuration file that controlled application security. He was tasked to do troubleshooting as Razer staff had problems accessing an application.

This configuration error allowed access without authentication into the application. In the trial in July 2022, Cabalag admitted to have caused the misconfiguration.

In a written decision, Judge Lee Seiu Kin said Capgemini had breached its contractual obligations to Razer and was also negligent in responding to Razer's login issues.

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