Thursday, July 21, 2005

Break-in costs ChoicePoint millions

The financials are in for ChoicePoint's second quarter and CNet is reporting that the data aggregator has taken a total charge fo $11M related to the privacy incident that took place some months ago. That's real money and has a direct impact on the shareholder's value:

Break-in costs ChoicePoint millions | CNET

"Data broker ChoicePoint took a $6 million charge in its second quarter to cover costs related to the leak of information on about 145,000 Americans, it said Wednesday.

The charge is in addition to the $5.4 million in costs the company recorded in the first quarter. Of the total $11.4 million, about $2 million in charges through June 30 were for communications to individuals whose data has been exposed as well as credit reports and monitoring services for those people, the company said in a statement.

The remaining $9.4 million was for legal and other professional fees, ChoicePoint said...."

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