A Florida data broker that lost hundreds of millions of Social Security numbers and other personally identifiable information in a data breach earlier this year files for Chapter 11 bankruptcy protection as it faces a wave of lawsuits. did.
Jericho Pictures, the parent company of hacked data broker National Public Data, told a Florida bankruptcy court that it will not be able to make any expected payments, including repaying debtors and paying for the credit monitoring of “hundreds of people.” “They are unlikely to deal with any debt or class action lawsuits.” Millions of people potentially affected. ”
Salvatore Verini, owner of Jericho Pictures, said in his initial filing that the company “faces regulatory challenges from the Federal Trade Commission and more than 20 states with civil penalties for data breaches.” “We face considerable uncertainty.”
News of the bankruptcy was first reported by PCMag.
Since April, hackers with a history of selling stolen data have broken into national public data and claimed to have stolen billions of records, affecting around 300 million people, making it the biggest data breach of the year. It became one of the
According to a data breach notification on the data broker's website, the stolen data includes names, dates of birth, email and mailing addresses, phone numbers, and social security numbers. Given the nature of information collected by data brokers, some of the stolen data was accurate and some was not, and much of it related to deceased people.
Security researchers estimated that the company's stolen databases contained a total of approximately 270 million Social Security numbers.
Mr. Verini valued the company's database of stolen Social Security numbers at $1 million, according to the bankruptcy filing. The filing also lists several other databases the company maintains as assets, but does not provide corresponding valuations. These datasets pertain to individuals authorized by the Drug Enforcement Administration to write prescriptions for controlled substances. A person with a permit to carry a concealed weapon. A databank containing public records of marriages, divorces, bankruptcy filings, international financial sanctions, etc. Among other things.
Given that there is little left in the company's coffers, it is unlikely that litigation or enforcement will bring any compensation to victims.
The data broker's bankruptcy filing revealed that its insurance company “denied coverage” after the data breach and that the company's total assets were less than $75,000. Much of the company's revenue went toward purchasing large amounts of data and remuneration for Verini as the company's sole operator. As required in the bankruptcy filing, the company disclosed net income of $475,526 in 2022 and $865,149 in 2023.