According to a Motion for Preliminary Approval filed in a Georgia federal court, Home Depot has agreed to pay $25 million and strengthen its data security practices to resolve a putative class action brought by financial institutions after a 2014 data breach that compromised 56 million credit and debit card numbers. It is reported that financial institutions that file a valid claim will be eligible to receive a fixed payment estimated to be $2 per compromised card. Financial Institutions that submit specific proof of losses may also be eligible for a supplemental award of up to 60% of their documented losses.
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Posts Tagged ‘Home Depot’
Home Depot agreed to pay $19.5 million to settle claims of consumers impacted by a 2014 data breach. The data breach was alleged to have involved more than 50 million cardholders.
Under the proposed settlement terms, the home improvement retailer will set up a $13 million fund to reimburse shoppers for out-of-pocket losses, and spend at least $6.5 million to fund 1-1/2 years of cardholder identity protection services. Home Depot also agreed to improve data security over a two-year period, and hire a chief information security officer to oversee its progress. If the settlement is approved, Home Depot will pay the attorney fees and costs for the class. Read more…
Home Depot has said that the payment data breach that was first announced earlier this month may have affected 56 million cards, making it larger than the attack last year on Target. Home Depot claimed that the malware has been eliminated from its systems, but investigations have been launched by attorneys general in multiple states.