Since Equifax announced its enormous data breach, it has been hit with more than 30 lawsuits in the US. Yesterday, it was served with one accusing it of committing securities fraud.
The securities allegations include misleading shareholders on its consumer data protection practices and inflating financial statements before the data breach was announced.
Equifax's shares have fallen about 20% since the data breach announcement.
It is not mentioned in this article, but I've seen many criticisms from data security experts on how this breach was handled. In particular, Equifax's offer of free credit monitoring for a year is receiving significant backlash.
It is crucial to have a well thought out plan, including media statements and customer solutions, in advance of a data breach.
At least 25 lawsuits had been filed in federal courts by Sunday, including at least one accusing the company of securities fraud, court records show. Several more lawsuits were filed against Equifax on Monday. Many of those raising similar claims will likely be combined into a single, nationwide case.