Home Depot Reaches $25 Million Settlement with Banks
Last week, Home Depot reached a settlement with banks in a class action lawsuit filed after a 2014 data breach, which exposed the account information of 56 million customers. The home improvement retailer will pay $25 million for damages incurred during the breach. The funds will be distributed to any financial institutions that have not yet released their claims against the Atlanta-based retailer.
The company will pay an additional $2.25 million to entities whose claims have been released. Home Depot also agreed to improve its data security going forward to minimize the chances of another breach.
Home Depot first confirmed the breach in September 2014. At that time, they said anyone who had paid with a debit or credit card in a U.S. store between April and September 2014 may have been affected. A few months later, the company hired a chief security information officer to oversee information security.
In 2016, the retailer paid $19.5 million to customers affected by the breach.