Home Depot may have had a successful Q3 despite its massive end-of-summer data breach, but some of its customers aren’t too happy.
The home improvement retailer is facing at least 44 lawsuits over the breach, and there could be more coming, the company said. Some lawsuits maintain that Home Depot didn’t take adequate steps to ensure data security and that it failed to notify customers in a timely manner when the breach occurred.
Home Depot has reported that the breach, which is still under investigation, has cost it $62 million so far, but that there will be further expenses. The company has a $100 million insurance policy to cover such expenses, with a $7.5 million deductible.
Home Depot hasn’t suffered the kind of sales drop and customer loyalty fallout that Target experienced months after its own breach, despite the fact that Home Depot’s breach actually affected more cards.
Lawsuits are bound to happen in this kind of situation, but Home Depot has an especially poor record in data security, with some ex-employees saying that they were ignored when they tried to warn the retailer had inadequate protection in place. That apparently continued even after Target’s experience, which should have been a warning to all retailers to be on high alert.