In on-going data breach information, it was reported that Home Depot is looking to have the class action lawsuit brought up by a group of cardholders be dropped. They are basing their rationale on the fact that cardholders were not economically hurt through the card data breach event. (Target settled their cardholder lawsuit). If Home Depot does settle the laws suit with consumers, it still faces a lawsuit by financial institutions who have suffered economically, and they are prepared to assign a number to their losses.
“In an echo of the consumer suit, the financial institutions claim that Home Depot ignored the pleas of its own staff about upgrading its security systems and slams the firm for failing to detect the hack for around five months. The suit says that the card issuers have in large part borne the costs of Home Depot’s “misconduct”, with community banks and credit unions alone hit with a $150 million bill.”
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Service
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