Choicepoint to Pay $15M Fine

Atlanta-based data aggregator ChoicePoint today agreed to pay $15 million to settle charges that it violated federal consumer protection laws when it allowed criminals to purchase sensitive financial and personal data on at least 163,000 Americans.

The settlement addresses a pair of lawsuits filed against ChoicePoint by the Federal Trade Commission and represents the largest civil penalty ever obtained by the agency.

Via Brian Krebs at the Security Fix blog.

1 thought on “Choicepoint to Pay $15M Fine

  1. Adam,
    On Jan 22nd on the BofA post, I commented:
    ” . . . the ability to identify and address these issues will require that more firms fail through their share prices as opposed to pressures from the security community and regulatory agencies . . .”
    CPS closing price:
    01/26/2006 $42.95
    01/25/2006 $46.30
    (source: http://finance.yahoo.com/q?s=cps)
    I don’t have VWAP for these sessions, but given an estimate from the previous trading session, this represents a one-day loss of $3.30 (volume weighted estimate) per share in price. On shares outstanding on CPS of 89.68M, this represents a total loss (to all shareholders) of slightly more than US$295M. This, for a settlement with damages in the amount of US$15M.
    Conclusion – A management team that did not give reasonable attention to the security issues at hand now has good reason to do so (is the Federal Trade Commission a regulatory agency?).
    Apparently the tail wags the dog. I stand corrected.
    Regards,
    —O
    p.s. Of course, CPS, at US$3.85B (in market cap) could still go belly up, so there is an opportunity for me to retract this . . .

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