CUs, others lodge additional suits against Home Depot
ATLANTA (11/19/14)--A third credit union has filed suit against Home Depot for the data breach that compromised 56 million debit and credit cards nationwide, pushing the total number of lawsuits against the home improvement retail giant up to 39.
Similar to the lawsuits filed against Target in the aftermath of that mega-breach, the U.S. Judicial Panel on Multidistrict Litigation plans to host a hearing next month in Charleston, S.C., to determine how it might consolidate the Home Depot cases into a single court action (Atlanta Business Chronicle Nov. 14).
Greater Chautauqua FCU, Falconer, N.Y., with $57 million in assets, was the latest credit union to lodge a complaint against Home Depot. Two other credit unions from western New York filed lawsuits in late September (Buffalo Business First Nov. 14).
Each suit claims that personal payment data from roughly 56 million consumers was accessible to cybercriminals for more than five months before Home Depot learned of the breach (News Now Sept. 25).
Credit unions have been materially affected by the episode, as it has cost them nearly $60 million to reissue compromised cards, grapple with fraud members have experienced, and cover other related costs, according to the Credit Union National Association's recent survey.
The nation's largest credit union trade association estimates it costs $8.02 per reissued card for a credit union, and that more than 7.2 million cards issued by credit unions were compromised as a result of the breach.
CUNA, as well as state credit union leagues, continue to urge lawmakers to pass legislation that would require merchants to meet the same strict personal payment data security standards financial institutions are require to uphold.