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Comments
There's no way you can sue them for this. As you're using VPS, you're responsible for managing it. I know you're angry and thinking about punishing them. But the law doesn't care about emotions. Moreover, the problem that you're saying can't be proven due to the host because there are thousands of other reasons why your site may get hacked. For example, easy passwords, security vulnerabilities in plugins or codes, backdated plugins, blah blah. Even if it is due to their server node's low security, you can't sue them because you have no proof that they have a problem with their security. You have to show the court proof. What you're saying is just your thoughts. Better use the Google Web Master tool to remove the indexed page. It takes only two or three days to remove any index page if you're the site owner in the Google Web Master tool and request the removal from there.
Why post on the forums? I would just hire a lawyer and ask that question. Most people here are not legal experts, if you have lost that kind of money, then hiring a lawyer is your best option.
There is no way you can prove direct corelation between rankings lost and plugin leak. You would need conformation directly from google that your rankings dropped because of this (and ofc this wont happen). There are tons of ranking factors, no seo expert will say before court that its obvious that your rankings dropped because of this plugin leak. Because of this whole idea of suing hosting company is pointless.
Friendly advice from ex seo guy.