Home Depot to Pay $19 Million to Settle Data Breach Lawsuit

Customer credit card data was exposed

Home Depot (NYSE:HD) has agreed to settle a lawsuit linked to the company’s 2014 data breach.

home depot
Source: Wikimedia Commons

The retailer will shell out at least $19.5 million in compensation for U.S. consumers affected by the breach, which exposed the credit card information of more than 50 million shoppers.

$13 million of this amount will be used to cover out-of-pocket losses endured by customers, while the extra $6.5 million will be used to improve Home Depot’s cardholder identity protection services.

The company will also improve its data security over the next two years with the help of a chief information security officer to oversee the retailer’s progress. Legal fees and related costs for affected consumers will also be covered by Home Depot.

“We wanted to put the litigation behind us, and this was the most expeditious path,” spokesman Stephen Holmes said. “Customers were never responsible for any fraudulent charges.”

HD stock is down 1% Wednesday.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/03/home-depot-data-breach-hd-2/.

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