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Home Depot Settles Major Data Breach Suit with Financial Institutions for $25 Million

Client Alert | 1 min read | 03.13.17

On Wednesday, in one of the most high-profile data breach settlements to date, The Home Depot agreed to pay $25 million to settle a consolidated class action involving more than 60 nationwide financial institutions harmed by the retailer’s September 2014 data breach.  That month, the home improvement giant announced that hackers had installed malware on Home Depot’s checkout kiosks and, over a five-month period, stolen credit card information of more than 56 million shoppers.  Immediately thereafter, financial institutions filed more than 25 suits seeking compensation for reissuance fees and fraudulent transaction reimbursements, suits that were then consolidated before a federal court in Atlanta.

The agreement requires the retailer to establish a $25 million settlement fund to reimburse financial institutions for the reissuance of credit cards compromised by the data breach.  The Home Depot has also agreed to a series of additional security measures, including implementing new safeguards developed through a risk exception process and enacting new vendor security programs.

Prior to Wednesday’s announcement, The Home Depot had already spent more than $140 million to settle claims by many of the nation’s large credit card issuers – including MasterCard, Visa, American Express, and Discover – for damages sustained in this breach.

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Client Alert | 4 min read | 04.14.25

A New Sheriff in Town: State Attorneys General Take Action To Enforce Violations of the Foreign Corrupt Practices Act

Foreign Corrupt Practices Act (“FCPA”) enforcement has been fairly predictable for many years as the Fraud Section of the Department of Justice (“DOJ”) has maintained exclusive authority over investigating claims and bringing enforcement actions in federal courts across the country. President Trump’s recent pause on FCPA enforcement, the first of its kind since the statute was passed in 1977, has created significant uncertainty for individuals and businesses operating internationally regarding the future of FCPA enforcement. While DOJ is in the process of assessing what the future of FCPA enforcement, state attorneys general are stepping in. On April 2, California Attorney General Rob Bonta issued a Legal Advisory (the “Advisory) to California businesses explaining that violations of the FCPA are actionable under California’s Unfair Competition Law (UCL). The announcement signals a shift in FCPA enforcement where states may take the lead and pursue FCPA enforcement through their state unfair competition laws....