Financial institution plaintiff’s co-lead counsel in the Home Depot data breach suit is interested in examples of confusing or misleading communications credit unions may have received regarding alternative recovery offers (AROs) offered to them to settle their data breach claims.
Counsel is also offering assistance to any credit union that accepted such an ARO by signing one of the provided releases that may have done so unintentionally or without understanding its impact. Credit unions wishing to communicate with counsel may send an email to DataBreachLawsuit@cuna.coop.
AROs have been offered by MasterCard and Visa to settle claims for damages resulting from the Home Depot data breach in exchange for a release of rights to seek additional recovery via the courts. In previous conference calls discussing the offers, counsel noted that typically the card issuer’s ARO falls short of what will cover the losses experienced by most financial institutions.
CUNA reminds credit unions to become fully informed of their legal rights and to make a decision based on their own particular situation. If they were not fully informed in executing such a release, they may wish to talk to class counsel for further guidance.
Counsel has also recently become involved in another similar case alleging a data breach at Wendy’s restaurants caused similar damage to financial institutions.They are willing to talk to any credit union that may have experienced a loss in that incident.
CUNA has been heavily involved in the issue of merchant data breaches by corresponding and meeting with federal lawmakers and their staffs and will continue all efforts to ensure any and all data security-related bills afford credit union members with the greatest protection possible.
CUNA surveys found credit unions alone were hit with nearly $60 million in costs after Home Depot’s 2014 data breach and $30.6 million after Target’s 2013 data breach.