ATLANTA (3/9/16)--Home Depot has agreed to pay a total of $19.5 million in compensation to consumers who were affected by the 2014 data security breach.
Two different class action suits were brought against the home improvement retailer—this one by consumers affected by the breach and a second by financial institutions affected by the breach.
According to court papers, the consumer settlement covers roughly 40 million people who had payment card data stolen, and 52 million to 53 million people who had email addresses stolen, with some overlap between the two groups, Reuters reported (March 8).
Home Depot has agreed to pay $13 million to consumers with documented out-of-pocket losses or unreimbursed charges. It also agreed to pay $6.5 million to fund 18 months of identity theft protection services for card holders, hire a chief information security officer and take steps to improve its data security.
The company also agreed to pay legal fees of the plaintiffs’ lawyers. The settlement still needs to be approved by the court.
“We wanted to put the litigation behind us, and this was the most expeditious path,” Home Depot spokesman Stephen Holmes said.
The Credit Union National Association, state credit union leagues, and individual credit unions and banks joined the consolidated financial institution class action suit in response to Home Depot’s September 2014 data breach. That suit seeks monetary recovery and injunctive relief and that suit is in the discovery phase of litigation.
Counsel for financial institution plaintiffs have been providing regular updates on alternative recovery offers from MasterCard and Visa regarding the Home Depot breach.
A conference call is scheduled for today by plaintiff’s co-lead counsel regarding alternative recovery offers (AROs) that MasterCard is proposing to credit unions affected by the Home Depot breach.
The call will be 10 a.m. (ET) and the call-in information is (844) 286-3346; code: 61071741.
Credit unions and other financial institutions have been given a deadline of March 24 by MasterCard to accept these offers.