FTC Seeks Dismissal of MGM Resorts’ Lawsuit Amid Ongoing Cybersecurity Investigation
MGM Resorts initially filed a lawsuit against the Federal Trade Commission (FTC) in April, challenging the agency’s investigation into a cybersecurity incident that occurred in 2023. MGM’s complaint argued that the FTC improperly denied its petition to quash the investigation and that FTC Chair Lina Khan should have recused herself from the matter due to a potential conflict of interest.
FTC’s Motion to Dismiss
In response, the FTC has filed a motion to dismiss MGM’s lawsuit in the D.C. District Court. The FTC contends that MGM lacks the standing to sue because the agency has not taken any enforceable action against the company that warrants a legal challenge.
The FTC noted that MGM has not complied with the investigation request, nor has the agency imposed any penalties on the company.
The motion emphasized that MGM’s lawsuit is premature, as the company sought pre-enforcement declaratory relief without waiting for any punitive measures from the FTC. “Simply put, MGM has refused to comply with the Demand.
Instead, MGM preemptively sued the Commission for pre-enforcement declaratory relief. MGM’s suit fails, however, both for lack of subject matter jurisdiction and for failure to state a claim for relief,” the FTC stated in its motion.
Jurisdiction and Due Process
The FTC also argued that the court should not intervene at this stage because the FTC’s investigation process constitutes the initial phase of due process.
The agency maintained that any legal disputes should be addressed within the administrative framework of the FTC before escalating to the judicial system. Therefore, the FTC suggests that the court lacks the jurisdiction to act on MGM’s lawsuit.
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