Equifax announces $671M settlement related to cybersecurity incident
Equifax announced a comprehensive resolution of significant U.S. consumer-related litigation and regulatory matters facing the company related to its 2017 cybersecurity incident. The $671M resolution includes settlement agreements that would resolve the multi-district consumer class action litigation, as well as investigations by the Federal Trade Commission, the Consumer Financial Protection Bureau, the Attorneys General of 48 states, Puerto Rico and the District of Columbia, and the New York Department of Financial Services. If approved by the Court, a consumer restitution fund of up to $425M will be available to pay for three-bureau credit monitoring for consumers whose information was impacted in the 2017 breach, actual out-of-pocket losses related to the breach, and other consumer benefits such as identity restoration services. Equifax has been providing free credit monitoring services to consumers since September 2017. As part of the resolution, Equifax has agreed to continue the significant steps it has taken in the wake of the cybersecurity incident to enhance its information security and technology program. It also has agreed to make payments totaling $290.5M directly to certain state and federal regulatory agencies and to pay attorneys' fees and costs in the multi-district litigation. Equifax recorded an accrual of $690M in the first quarter of 2019 and expects to increase its accrual by approximately $11M in the second quarter of 2019 principally related to the comprehensive consumer settlement, resulting in a total $701M accrual related to the 2017 cybersecurity incident.