Are Financial Institutions The Next Representative Plaintiffs In Canadian Class Action Proceedings? Lessons From Home Depot

Financial Institutions rarely wear the "plaintiff hat" when it comes to class action proceedings. However, 50 financial institutions in the US found themselves on the other side of the negotiating table in 2014 when they launched 25 class actions against Home Depot in response to the massive breach of the retailer's payment data systems, which compromised 56 million credit and debit cards. These individual actions were eventually consolidated into a single complaint.

In a proposed settlement submitted for preliminary approval to the Georgia federal court on March 8, 2017, Home Depot has agreed to implement new data security measures going forward and pay $25 million into a non-revisionary fund for distribution to financial institutions that have not already released their claims. In addition, certain financial institutions who were persuaded to release their claims against Home Depot after receiving misleading communications from the retailer would also receive up to