Equifax (NYSE:EFX) can finally put a big class-action lawsuit behind itself as the company reached a deal that will cost it up to $700 million. The breach occurred back in 2017 and resulted in lots of personal information being compromised, including more than 146 million Social Security numbers.
The settlement still requires approval but it looks to finally add some closure for investors. With the users eligible for benefits having multiple options to choose from, the size of the cost will fluctuate depending on whether someone opts for credit-card monitoring services or being compensated through other means. It also depends on the number of people that claim the benefits as well.
The company already recognized a charge of $690 million in its Q1 results earlier this year which brought down its financials into the red and looks to guarantee that it will finish 2019 in a net loss position. In 2018, Equifax generated just $300 million in profit on revenues of $3.4 billion.
Despite the negativity surrounding the breach, the stock has almost completely recovered since news about it broke nearly two years ago.
Before the selloff began, the stock was trading at over $140 a share, not too far away from where it is today.
Year to date, Equifax has risen nearly 50% as concerns surrounding the breach have been all but forgotten. One thing we can be sure of is that in light of this costly settlement and Facebook’s (NASDAQ:FB) $5 billion settlement with the SEC, companies are going to taking data safety and security much more seriously.
