Law firm Pomerantz LLP says it’s “investigating claims on behalf of investors of Sinclair Broadcast Group, Inc…The investigation concerns whether Sinclair and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.”
Sinclair asserts it “paid no ransom, and was able to restore its network from backups, but there was some disruption which impacted revenues and expenses.”
Sounds good until you see the Company estimates “approximately $24 million of unrecoverable net loss” — even after insurance reimbursements.
“The incident resulted in a $63 million loss of advertising revenues for the broadcast segment in the fourth quarter and incurred costs of $11 million to date. After potential insurance reimbursements, noting that there can be no assurance that the insurance policies will pay their full coverage or the timing of such reimbursements, the Company estimates that the cyber incident will have resulted in approximately $24 million of unrecoverable net loss; however, that estimate may increase as details of the recovery are still fluid.”