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German Firm Files For Insolvency After Cybercriminals Shut Down Production For 6 Weeks

1 month 2 weeks ago
German textile firm ZEGO has filed for insolvency and is blaming a March cyberattack that shut down production for nearly six weeks. "ZEGO's filing adds another name to the short but growing list of companies that say a digital break-in was commercially fatal to their business," reports The Register. From the report: In a notice to customers and suppliers, the organization said it had exhausted every available option before seeking insolvency protection. Managing director Johannes Zenglein described the filing as "one of the most difficult steps in our company's 37-year history." "The cyberattack of March 29, 2026, however, impacted our company to an extent that we could not fully compensate for despite our best efforts," Zenglein wrote. "The consequences resulted in a production outage of nearly six weeks and significant financial strain. These effects ultimately impacted our financial situation so severely that filing for insolvency became necessary." ZEGO did not disclose what kind of attack it suffered, whether ransomware was involved, who was behind it, or whether customer or employee data was compromised. What it has made clear is that the operational disruption alone was enough to push the business beyond the point of recovery. ZEGO said insolvency proceedings have now been initiated, but insisted the filing does not necessarily spell the end of the business. It said it plans to keep production running while administrators attempt to restructure the business, preserve jobs, and keep customers and suppliers on board.

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States Sue to Block Paramount-Warner Bros Merger, Defying DOJ

1 month 2 weeks ago
A coalition of 12 states led by California is suing to block the $111 billion Paramount Skydance-Warner Bros. merger, arguing it would reduce competition in theatrical distribution, blockbuster films, and basic cable licensing. The challenge (PDF) defies the DOJ's approval of the deal. Variety reports: The coalition, led by California Attorney General Rob Bonta, alleges that the $111 billion transaction violates the Clayton Act by lessening competition in three distinct markets: wide-release theatrical distribution, "top-grossing" theatrical distribution, and basic cable licensing. "The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.," Bonta said in a statement on Monday. The suit argues that the combined company will control 27% of the wide-release theatrical distribution market, 30% of the submarket comprising "anticipated blockbuster films," and 27% of the basic cable bundle. The states argue that such consolidation will harm theaters and cable and satellite providers that rely on competition among distributors. Paramount and Warner Bros. are two of the five remaining legacy studios. Together, all five -- including Disney, Sony and Universal -- control 86% of theatrical distribution and 90% of blockbuster distribution, the states said. Warner Bros. and Paramount are also the second- and third-largest basic cable distributors, respectively. [...] The states are expected to seek an injunction to block the transaction, which Paramount expects to close sometime after July 22. The 12 states in the coalition are Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. [...] All are represented by Democratic attorneys general. "Consolidation here not only leads to higher prices -- it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences," Bonta said. "In this country, no one is above the law. With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy."

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