VLP Partner Melissa Krasnow Quoted in Bloomberg BNA Article “Home Depot Builds a Data Breach Settlement Blueprint”
VLP Partner Melissa Krasnow was interviewed for the article “Home Depot Builds a Data Breach Settlement Blueprint” for Bloomberg BNA Privacy Law Watch Bulletin. The article reported on a proposed settlement between Home Depot and shareholders relating to a 2014 data breach.
The article noted that companies hit by data breaches often face class action complaints filed by consumers. The author pointed out that these companies also face lawsuits from shareholders looking to thwart future breaches and restore financial stability to companies in which they have invested. Home Depot’s willingness to take meaningful but financially limited remedial mitigating action achieves a mutually beneficial resolution that companies facing any kind of data breach lawsuits, such as Yahoo! Inc., may rely on to improve their corporate data governance.
Ms. Krasnow told Bloomberg BNA that the settlement may be a “roadmap” for other companies, especially consumer facing retailers that have been hit by a data breach. Companies and their counsel may look to the settlement for “additional guidance” on how to conduct post-breach remediative actions, she said.
Krasnow also said that Home Depot may have agreed to the settlement because it saw the attorneys’ fees as a minimal money issue and it believed the actions “would restore trust” in the company.
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