Data Breach Battle In Court For Home Depot Inc (HD) To Begin
Home Depot Inc (NYSE:HD) will require defending against at least 44 lawsuits filed against the company in a court battle starting today. More than 30 of such lawsuits have been consolidated into one court action, which will be overseen by Chief Judge Thomas W. Thrash Jr., in U.S. District Court for the Northern District of Georgia.
An initial case management conference will begin today at 10:00 a.m. in Courtroom 2108 at the Richard Russell Federal Building in downtown Atlanta. Thrash, in a notice of the hearing, told attorneys representing the complainants to come prepared with suggestions that could help facilitate speedy, just and inexpensive resolution of this litigation.
Following the reports of data system breach, Home Depot Inc (NYSE:HD) initiated internal investigation, in cooperation with law enforcement agencies and the third-party IT security experts. The company noted that the malware used in the attack was designed to evade antivirus detection software. Hackers used a third-party vendor’s user name and password to enter the Home Depot’s network and then acquired elevated rights to deploy malware on its self-checkout systems.
Since the hacking attack in September, those affected due to data breach started filing lawsuits against the company, demanding compensation for their damages. The Credit Union National Association estimated damages worth $60 million to its members due to data breach. The Independent Community Bankers of America reported the breach to cost more than $90 million to its members. The experts believe such figures to be just the tip of the iceberg for the company.
Home Depot Inc (NYSE:HD) had already warned investors that the aggregate amount paid in compensation or as result of claims settlement could materially impact the company’s consolidated financial condition, cash flows and results of operations in future periods. Home Depot is one of the top 50 most valuable brands and most admired companies and given the high financial and reputational stakes, the company has appointed Atlanta’s two largest law firms to defend itself in the court trials.
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