[ISN] Heartland breach expenses pegged at $140M -- so far

From: InfoSec News <alerts_at_private>
Date: Tue, 11 May 2010 00:31:48 -0500 (CDT)

By Jaikumar Vijayan
May 10, 2010

The costs to Heartland Payment Systems Inc. from the massive data breach 
that it disclosed in January 2009 appear to be steadily adding up.

Quarterly financial results released by Heartland last week show that 
the card payment processor has accrued $139.4 million in breach-related 
expenses. The figure includes a settlement totaling nearly $60 million 
with Visa, another of about $3.5 million with American Express and more 
than $26 million in legal fees.

That total also includes $42.8 million that Heartland has set aside to 
fund proposed settlements with several other litigants over the breach. 
One example of what the fund is set up for is Heartland's offer to 
settle several consumer class action lawsuits against it for $4 million.

So far, Heartland has recovered about $30 million from insurance 
companies. Even with the updated figures, Heartland so far has spent 
considerably less than the staggering $250 million that TJX Companies 
Inc. estimated it would eventually spend to address its massive 2006 
data breach.


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Received on Mon May 10 2010 - 22:31:48 PDT

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