follow-up: Heartland swings to Q2 net loss as cost of data breach mounts

[security curmudgeon <jericho () attrition org>]

http://www.finextra.com/fullstory.asp?id=20338

04 August 2009 - 13:55
Heartland swings to Q2 net loss as cost of data breach mounts
Last year's data breach at Heartland Payment Systems continues to prove 
costly, with the vendor incurring related pre-tax expenses of $19.4 
million in the second quarter, contributing to a net loss for the three 
months.

The $19.4 million in various expenses, accruals and reserves comes on top 
of $12.6 million in costs in the first quarter attributable to the massive 
data breach, which saw malicious software in the firm's processing system 
potentially compromising the card data of millions of people.

Of the $32 million for the six months, $22.1 million, relates to fines 
imposed by the card brands in April 2009 against the company and its 
sponsor banks and a settlement offer made.

Heartland says it has not received any response to this settlement offer 
and there can be no assurance the claims that are the subject of the can 
or will be accepted.

[..]
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