Netflix has been sued by financier Simon Afram and production company Op-Fortitude over the theft of an unencrypted drive containing an unreleased Nicolas Cage blockbuster. The lawsuit seeks $112.5 million in damages, alleging Netflix failed to take basic security measures.

Afram paid $45 million for the film's creation but now fears piracy. Netflix claims Afram and Op-Fortitude are trying to extort money by threatening a leak, though it insists there’s no evidence that has happened yet.

The situation highlights the risks of unsecured data in the streaming era. Berney, director of Netflix Original Film, admitted waiting a week before warning the production company about the theft, only offering to replace the drive when faced with legal action.

Despite claims there are other copies of the movie, Afram and Op-Fortitude argue that without encryption, any copy could be compromised. The lawsuit also demands punitive damages for Netflix’s alleged breach of contract regarding the return and deletion of screener files after viewing.

In response, Netflix maintains it is not liable for the situation, citing the production company's failure to encrypt the drive as the primary issue. However, with streaming services becoming ever more common, this case could have far-reaching implications for data security practices in entertainment.