ATLANTA (12/7/15)--The lead counsel for financial institution plaintiffs in the Home Depot data breach lawsuit will hold a conference call today regarding a settlement agreement that has been proposed by Home Depot and MasterCard International Inc.
The call, set for 3 p.m. (ET), will cover communications that were sent to plaintiff credit unions and banks just prior to Thanksgiving. The call-in information is (844) 286-3346; code: 98309432.
Credit unions should evaluate any potential settlement they might be presented in light of their own specific circumstances. It remains to be seen how the recent $39 million class action settlement between Target and financial institutions will affect this case.
“While all the details are unknown, making it difficult to evaluate, the available information indicates that the settlement offers inadequate reimbursement for the losses caused by the Home Depot data breach, while requiring financial institutions to release their legal claims,” counsel noted. “For example, one financial institution was informed that the settlement compensation offered for ‘operational reimbursement’ includes only $1.18 per ‘Qualified Account.’ This amount falls short of the operational losses sustained as a result of Home Depot’s breach.”
The class action lawsuit was brought against Home Depot over its massive data breach in 2014, which CUNA estimates cost credit unions alone $60 million.
“The Target settlement sets an important precedent by showing that financial institutions can achieve greater compensation for their losses through the legal system,” plaintiffs’ counsel said.
Plaintiffs’ counsel also advised that it is in credit unions’ best interests to first find out all the facts relating to Home Depot’s agreement with MasterCard before accepting a settlement