ATLANTA, July 22, 2019 /PRNewswire/ -- Equifax Inc. (NYSE:
EFX) today announced a comprehensive resolution of significant U.S.
consumer-related litigation and regulatory matters facing the
company related to its 2017 cybersecurity incident.
The $671 million resolution
includes settlement agreements that would resolve the
multi-district consumer class action litigation, as well as
investigations by the Federal Trade Commission (FTC), the Consumer
Financial Protection Bureau (CFPB), the Attorneys General of 48
states, Puerto Rico and the
District of Columbia, and the New
York Department of Financial Services (NYDFS).
If approved by the Court, a consumer restitution fund of up to
$425 million will be available to pay
for three-bureau credit monitoring for consumers whose information
was impacted in the 2017 breach, actual out-of-pocket losses
related to the breach, and other consumer benefits such as identity
restoration services. Equifax has been providing free credit
monitoring services to consumers since September 2017.
"This comprehensive settlement is a positive step for U.S.
consumers and Equifax as we move forward from the 2017
cybersecurity incident and focus on our transformation investments
in technology and security as a leading data, analytics, and
technology company," said Equifax Chief Executive Officer,
Mark W. Begor. "The consumer fund of
up to $425 million that we are
announcing today reinforces our commitment to putting consumers
first and safeguarding their data - and reflects the seriousness
with which we take this matter. We have been committed to resolving
this issue for consumers and have the financial capacity to manage
the settlement while continuing our $1.25
billion EFX2020 technology and security investment program.
We are focused on the future of Equifax and returning to market
leadership and growth."
As part of the resolution, Equifax has agreed to continue the
significant steps it has taken in the wake of the cybersecurity
incident to enhance its information security and technology
program. It also has agreed to make payments totaling
$290.5 million directly to certain
state and federal regulatory agencies and to pay attorneys' fees
and costs in the multi-district litigation. Equifax recorded an
accrual of $690 million in the first
quarter of 2019 and expects to increase its accrual by
approximately $11 million in the
second quarter of 2019 principally related to the comprehensive
consumer settlement, resulting in a total $701 million accrual related to the 2017
If the Court approves, members of the settlement class will
receive notification of their rights and options as part of the
multi-district litigation. More information can be found at
Additional detail on the terms of the proposed settlement in our
Form 8-K filed today with the Securities and Exchange
Equifax CEO Mark Begor will
provide details in the following conference calls:
- 9:00 a.m. ET Conference call
for investors, analysts and others
U.S. and Canadian
participants should dial: (888) 254-3590.
International callers should dial: (786) 789-4797.
A replay of this conference call will be available beginning
Monday, July 22 at 12:00 p.m. ET and ending at 12:00 p.m. ET on Monday, July 29. To access
the replay, please register.
- 9:30 a.m. ET Conference call
U.S. and Canadian participants should dial: (800)
289-0438. International callers should dial: (786) 789-4783.
Please dial the appropriate number 5-10 minutes prior to the
start of the calls to complete registration. Name and
affiliation/company are required to join.
This release contains forward-looking statements and
forward-looking information. These statements can be identified by
expressions of belief, expectation or intention, as well as
statements that are not historical fact. These statements are based
on certain factors and assumptions. While the company believes
these factors and assumptions to be reasonable based on information
currently available, they may prove to be incorrect.
Several factors could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
including, but not limited to, potential adverse developments in
new and pending legal proceedings or government investigations,
including the failure to obtain final court approval of the
agreements which make up the Consumer Settlement; uncertainties
regarding the ultimate amount and timing of payments the Company
may be required to make in connection with the Consumer Settlement;
the cost of compliance with the Company's non-monetary obligations
associated with the Consumer Settlement; uncertainties regarding
the outcome of the remaining legal proceedings or government
investigations related to the 2017 cybersecurity incident; and
limitations on the Company's ability to access the capital markets
and corresponding effects on the Company's ability to finance its
obligations. A summary of additional risks and uncertainties can be
found in the Company's Annual Report on Form 10-K for the year
ended December 31, 2018, including
without limitation under the captions "Item 1. Business —
Governmental Regulation" and "— Forward-Looking Statements" and
"Item 1A. Risk Factors," and in the Company's other filings with
the U.S. Securities and Exchange Commission. Forward-looking
statements are given only as at the date of this release and the
company disclaims any obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Equifax is a global data, analytics, and technology company and
believes knowledge drives progress. The Company blends unique data,
analytics, and technology with a passion for serving customers
globally, to create insights that power decisions to move people
forward. Headquartered in Atlanta, Equifax operates or has
investments in 24 countries in North America, Central
and South America, Europe and the Asia
Pacific region. It is a member of Standard & Poor's
(S&P) 500® Index, and its common stock is traded on the New
York Stock Exchange (NYSE) under the symbol EFX. Equifax employs
approximately 11,000 employees worldwide. For more information,
visit Equifax.com and follow the company's news
on Twitter and LinkedIn.
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SOURCE Equifax Inc.