“Home Depot Deal May Spur Banks to Sue Data Breach Targets,” Law360
March 14, 2017
Home Depot has agreed to fork over more than $25 million to put to bed a proposed class of financial institutions' data breach claims, a move that could prompt more banks and credit unions to go after the retailers that suffered the data breaches rather than pursue more traditional card brand recovery programs to recoup their losses.
The deal was preliminarily approved on Friday by U.S. District Judge Thomas W. Thrash, who set a final approval hearing for Sept. 22. It comes on top of $140 million that Home Depot has already paid to large issuers such as American Express, Discover and others through card brand recovery processes run by Visa and MasterCard for losses stemming from a 2014 breach that compromised 56 million credit and debit card numbers belonging to Home Depot shoppers.
Cohen Milstein serves on the plaintiffs' steering committee.