The recent Equifax lawsuit asserts that the company made false and misleading statements about data security, compliance, and internal controls. The case stems from the company’s massive data breach that exposed the personal information of 2.4 million consumers. At the time of the breach, Equifax touted its cybersecurity and compliance measures, as well as its role as a “trusted steward” of consumer information. Those claims were proven to be untrue and were behind the massive data breach.
2.4 million consumers were affected by the 2017 data breach
The number of consumers affected by the 2017 Equifax data breach has increased to 2.4 million, according to new reports. Although Equifax reportedly did not disclose the breach until late July, the agency was able to increase its earnings by 40% during its fourth quarter, beating analysts’ expectations and posting revenue growth in international markets. However, revenue from its division that works with lenders and banks declined year over year. Overall operating expenses rose 8%, largely due to litigation costs and security improvements.
In a press release issued early Thursday, Equifax revealed that 2.4 million U.S. consumers may have been affected by the 2017 Equifax data breach. In addition to the original number of consumers affected, the company also identified Canadian and British nationals as victims. The new figures confirm that a larger number of Americans were potentially affected by the breach. This new figure represents an increase of 400,000 consumers compared to the earlier estimate.
The suit against Equifax settles
The case alleged that the company breached its systems and exposed sensitive consumer data. The case arose in 2017 after the Equifax company announced that the company’s system had been compromised. The data breach impacted 148 million Americans and plunged the company’s share price. While this case is not the first of its kind, it is distinct from others due to the massive scope of the data breach and its impact.
As part of the settlement, Equifax has agreed to adopt certain data security practices and implement new ones. The company also agreed to pay separate costs for notice and settlement administration. The settlement also calls for the company to invest more than $1 billion in improving its data security measures. The plaintiffs’ settlement committee, led by Norman Siegel, was instrumental in negotiating and engineering the settlement. In addition, they were able to obtain substantial amounts of money to compensate class representatives and victims.
The funding source is $31 million
The funding source for the Equifax lawsuit is $31 million in a settlement agreement. The Federal Trade Commission and Equifax reached a $700 million compromise that included $125 per consumer for credit monitoring, an additional $2 billion in volume interest, and a $31 million payout pool cap. The settlement funds the monitoring subsidies, but if you don’t file for them before January 22, 2020, you’ll only receive a fraction of the total.
The company began as a credit bureau founded in 1899 by Guy Woolford and Cator. It expanded to offices across the United States and Canada. By the 1960s, Equifax was the nation’s largest credit bureau. It made reports to insurance companies when individuals applied for new policies, investigated insurance claims, and created employment reports for those seeking new jobs. The company acquired Anakam, a San Diego identity verification software company, without disclosing the terms of the transaction.
The terms of the settlement could change
In the Equifax lawsuit, the terms of the settlement are subject to change. The settlement is currently set at $300 million for American consumers, and this amount could change if more than 147 million opt-in victims choose to join. Equifax has agreed to provide free credit monitoring services for ten years. It is paying competitor Experian to provide the first four years free of charge. The company is assuming that 7 million consumers will sign up for the service.
If you’re a part of the Equifax lawsuit, it’s important to check the terms of the settlement in a timely fashion. In March, the Equifax board approved the settlement. However, the settlement was later revised at the request of regulators and incorporated into 52 separate consent orders. The settlement could also change again in the future, so you should keep an eye out for updates. If you’re interested in signing up for the Equifax lawsuit, don’t delay – contact the administrator today!