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Epic court battle coming over Home Depot data breach
From: Audrey McNeil <audrey () riskbasedsecurity com>
Date: Mon, 10 Nov 2014 19:12:58 -0700
http://www.bizjournals.com/atlanta/news/2014/11/07/epic-court-battle-coming-over-home-depot-data.html Battle lines are being formed in what's shaping up to be an epic court fight over The Home Depot Inc.'s data breach. On one side is the world's largest home-improvement retailer (NYSE: HD), with more than 2,200 stores, 300,000 employees, and $79 billion in annual sales. On the other side are the lawyers representing all of the individuals and financial institutions who claim they were harmed by the data breach. At least 30 class-action lawsuits have been filed against Home Depot in federal courts across the country. All allege that the company failed to properly safeguard its customers' personal financial data in the data breach, which was confirmed by Home Depot on Sept. 8. To see a list of the lawsuits, click here. Home Depot previously said the data breach exposed 56 million credit card accounts. The company reported Nov. 6 that about 53 million email addresses were also taken during the breach. Home Depot and its lawyers, along with the lawyers representing those allegedly harmed by the data breach, are now preparing for the upcoming legal showdown that will determine Home Depot's liability for the data breach and the damages it may have to pay.The company's Nov. 6 update on the data breach may contain a hint that the company's legal defense strategy could be to hold its technology providers accountable: The company's announcement noted that "Criminals used a third-party vendor's user name and password to enter the perimeter of Home Depot's network." The stakes for the company in the upcoming court battle are huge. Home Depot has not yet responded to any of the lawsuits. That is, the company hasn't denied or admitted any of the charges. Many of the class-action lawsuits filed against Home Depot will almost certainly be combined into one federal court action, what's known as "multidistrict litigation." The company's lawyers and those representing the data breach's victims are now going through court motions to determine which federal court will hear the case, and which individual judge will oversee it. Home Depot filed a document with the court on Nov. 3 laying out how the company would like the court battle to be handled. To read it in full, click here. The company, represented by attorneys from Atlanta law firm King & Spalding LLP, has asked that the case be fought out in federal court in Atlanta, since the city is the home of Home Depot, is the location of the majority of the witnesses in the case, and is home of the world's busiest airport. Home Depot opposes having the case heard in Florida, which is favored by five plaintiffs suing the company. Two credit unions have also suggested that the cases involving consumers could be separated from those involving financial institutions, into two separate cases. Home Depot's lawyers oppose this, saying in a court document that "centralization in front of a single judge will be more efficient than requiring two judges to become familiar with the underlying facts." Six of the plaintiffs in the lawsuits have asked that the combined case be heard by Judge Amy Totenberg of the federal court in Atlanta. Home Depot's lawyers oppose this, saying The Judicial Panel on Multi-District Litigation "should reject certain plaintiffs' improper attempt to judge shop, and the assignment of these cases should be left to the Panel and the Northern District of Georgia as required by statute."
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- Epic court battle coming over Home Depot data breach Audrey McNeil (Nov 17)