ATLANTA (1/15/16)–A conference call is set for Wednesday for financial institution plaintiffs–which includes credit unions–regarding settlement offers from Visa regarding the Home Depot data breach lawsuit.
Counsel for the financial institutions who brought the class action are hosting the call, which is set for 2 p.m. (ET). The call will discuss alternative recovery offers (AROs) that Visa is submitting to financial institutions. The call-in information is (844) 286-3346; code: 27507657.
“It is clear that the compensation offered by the Visa AROs falls short of the losses sustained by financial institutions as a result of Home Depot’s data breach,” hosting counsel said in the announcement. “In exchange, financial institutions would be required to release their claims in this litigation and forfeit any opportunity to receive additional reimbursement.” Counsel recommended that financial institutions reject the AROs and not sign any additional releases or settlement offers.
Under the Visa Global Compromised Account Recovery program, financial institutions are entitled to payment without releasing any of claims against Home Depot. However, in order to retain rights in the litigation, it appears plaintiffs would need to reject the “additional payment” offered in settlement letters from Visa.
In the case of the $39 million Target data breach settlement, financial institutions ultimately obtained significantly greater compensation in court compared with settlements offered by card providers, counsel noted.
Credit unions should evaluate any potential settlement they might be presented in light of their own specific circumstances.