All things considered, it was later rather than sooner. Yet the security didn't turn out to be that good even aside from the random number blunder. Obviously not enough capable people were trying, and Sony sort of yelled at them to start hacking... twice (Linux-less slim, complete Linux removal because of Geohot publishing some stuff).
As for suing... given that ruling in the States, Sony doesn't have much of a chance against Geohot. No idea where the others are located, but probaby nothing that can be done there as well. Hell, Sony lost in court against the jailbreak dongles in Spain.







