Home Depot to face a shareholder derivative lawsuit

FRT Admin
Site administrator
October 12, 2015

Home Depot Data BreachA shareholder derivative lawsuit has been filed against Home Depot due to its data breach in 2014.  The allegation towards Home Depot’s directors and officers is that they breached their fiduciary duties of loyalty, good faith, and due to care by knowingly disregarding their duties failing to ensure they took reasonable measures to protect their customers’ personal and financial information. A derivative action occurs when an individual or institutional shareholder serves as a lead plaintiff on behalf of those affected by the company’s directors and officers, who are suspected of fraudulent activities that cause harm to the corporation. In this case, Home Depot’s D&O’s were allegedly aware that the company’s systems were out of date and vulnerable to a breach and failed to put a protective measure into place.

As talked about in a previous post, cybersecurity breaches are increasing leading to derivative and shareholder litigation. The Home Depot breach resulted in 44 consumer civil actions, as well as several state and federal investigations. It will be interesting to see how data breaches result in shareholder litigation as this trend seems to continually appear.

Read more about the Home Depot derivative action here.

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Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability, and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and do not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

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Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.