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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 | 2 min read | 11.14.24

SEC ESG Enforcement Is Still Alive

On November 8, 2024 the SEC announced a settled enforcement action against Invesco Advisers, Inc. for making misleading statements about its integration of environmental, social, and governance (ESG) factors into the firm’s investment decisions. Invesco agreed to pay a $17.5 million civil penalty to settle the matter. This enforcement action makes it clear that, even though the SEC dissolved its ESG Task Force, the Commission continues to monitor firms’ statements and representations for misleading statements about ESG....