Successful litigation by The League, CUNA and other plaintiffs is ensuring Wisconsin credit unions - and others - receive compensation for costs related to the 2014 Home Depot data breach.
Wisconsin credit unions that filed a claim this fall and have not previously released their legal rights to recovery will join other nationwide that are taking part in a $25 million settlement with Home Depot in the wake of a security breach that compromised 56 million credit and debit cards, including those of credit union members.
Among the recoveries:
- Claimants will receive a fixed payment estimated at $2 per compromised card without having to submit documentation of their losses and regardless of whether any compensation has already been received from another source.
- Financial institutions that submit proof of losses are also eligible for a supplemental award of up to 60% of their documented, uncompensated losses between Sept. 1, 2014 and Dec. 31, 2014.
- Home Depot has also agreed to pay $2 per compromised card, up to $2.225 million in total, to entities whose claims were released by a sponsor (such as a card processor) in connection with the recovery program.
- A service award of up to $2,500 will be paid to each financial institution named in the Consolidated Class Action Complaint (subject to court approval).
Home Depot waso ordered to pay - above and beyond the settlement amount - the costs of notice, administration, and court ordered fees and expenses associated with the class action suit.
The settlement with financial institutions is in addition to the $19.5 million it was ordered to pay affected consumers as part of separate litigation.
Change in practice
Home Depot has been required to strengthen its future data security measures to reduce the risk of another breach.
The settlement was approved this fall by Judge Thomas W. Thrash.
We pursued the recovery to compensate credit unions for costs to re-issue cards to affected members and other related expenses. Protecting credit unions and their members from identity theft and fraud is a Legislative Guiding Principle of The League.
Home Depot has set up a fund to enable distribution of settlement funds through a claims process, which will begin 90 days from the date of settlement.
Wisconsin credit unions come together as a single League to Unite for Good; we remove barriers, increase awareness and foster service excellence. All of these steps help more Americans to see credit unions as their best financial partner and regard their credit union as their primary financial institution. Read more articles in our Unite for Good series.