Plaintiffs Reach Settlement in Home Depot Shareholder Derivative Litigation
Plaintiffs announced today that they have reached a comprehensive settlement in In re The Home Depot, Inc. Shareholder Derivative Litigation, Case No. No. 1:15-CV-2999-TWT. The settlement provides substantial benefits to Home Depot and current Home Depot Shareholders.
It requires corporate governance reforms that were negotiated with the assistance of a highly regarded third-party mediator and cybersecurity experts. The cybersecurity-focused corporate governance reforms address deficiencies plaintiffs believe existed at Home Depot regarding the Board’s oversight and responsibility for data security prior to the data breach.
The reforms to which the parties have agreed require the Board to:
- Document the duties and responsibilities of the Chief Information Security Officer
- Periodically conduct Table Top Cyber Exercises
- Monitor and periodically assess key indicators of compromise on network endpoints
- Maintain and periodically assess the company’s partnership with a dark web
- mining service to search for confidential Home Depot information
- Maintain an executive-level committee focused on the Company’s data security
- Receive periodic reports from management regarding the amount of the Company’s IT budget and what percentage of the IT budget is spent on cybersecurity measures
- Maintain an Incident Response Team and an Incident Response Plan
- Maintain membership in at least one Information Sharing and Analysis Center
- (ISAC) or Information Sharing and Analysis Organization (ISAO)
- Retain their own IT, data and security experts and consultants as they deem necessary
These provisions make data security a corporate focus and improve the company’s ability to prevent and respond to future attacks.
On July 14, 2017, U.S. District Court Thomas W. Thrash granted preliminary approval of the proposed settlement. If, as of April 21, 2017, you were a current record holder or beneficial owner of Home Depot common stock, your rights may be affected by this settlement.
If you have further questions, you may contact Plaintiffs’ Counsel or complete the form below.
Stuart J. Guber
Faruqi & Faruqi LLP
101 Greenwood Ave Ste 600
Jenkintown, PA 19046
Willem F. Jonckheer
Schubert Jonckheer & Kolbe LLP
3 Embarcadero Center Ste 1650
San Francisco, CA 94111