The company could not withstand the consequences of one of the largest data breaches in history.
Florida-based National Public Data, responsible for the data leak of 272 million Americans, has filed for bankruptcy. The decision comes amid a slew of lawsuits demanding that the parent company, Jerico Pictures, pay damages.
The company must notify and provide credit monitoring services for "hundreds of millions of potentially affected individuals." The data breach allowed the hacker to gain access to a huge database containing 272 million unique Social Security numbers (SSNs) of U.S. citizens and 600 million phone numbers.
The company is also under pressure from attorneys general in more than 20 states to pay civil penalties for the leak. The U.S. Federal Trade Commission (FTC) is also investigating. Several class action lawsuits have also been filed against Jerico Pictures.
Jerico Pictures' bankruptcy filing states that the company is unable to generate enough revenue to cover huge potential liabilities, defend in court and support investigations. It is also emphasized that the loss of reputation has led to an outflow of customers from National Public Data.
The bankruptcy petition was filed under Chapter 11, which is usually used for judicial restructuring of the business, but in the case of Jerico Pictures, the documents show that the company may not have enough funds to pay legal fees and possible fines. According to financial reports, Jerico Pictures earned a net profit of $865,149 last year on revenue of $1.2 million, and in 2022 the profit was $475,526.
Filing for bankruptcy can probably help the company cope with the barrage of lawsuits. The first class action lawsuit against Jerico Pictures was temporarily suspended by a Florida court after filing for bankruptcy.
National Public Data offered data verification services to its customers, but somehow the company collected sensitive information on millions of Americans. In September, the National Public Data website reported that the company no longer sells personal data, but the damage has already been done.
Meanwhile, experts warn that attackers can use stolen data for a variety of attacks, including identity theft or phishing attacks. Possible schemes include impersonating tax authorities, relatives, or using fraudulent investment offers.
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Florida-based National Public Data, responsible for the data leak of 272 million Americans, has filed for bankruptcy. The decision comes amid a slew of lawsuits demanding that the parent company, Jerico Pictures, pay damages.
The company must notify and provide credit monitoring services for "hundreds of millions of potentially affected individuals." The data breach allowed the hacker to gain access to a huge database containing 272 million unique Social Security numbers (SSNs) of U.S. citizens and 600 million phone numbers.
The company is also under pressure from attorneys general in more than 20 states to pay civil penalties for the leak. The U.S. Federal Trade Commission (FTC) is also investigating. Several class action lawsuits have also been filed against Jerico Pictures.
Jerico Pictures' bankruptcy filing states that the company is unable to generate enough revenue to cover huge potential liabilities, defend in court and support investigations. It is also emphasized that the loss of reputation has led to an outflow of customers from National Public Data.
The bankruptcy petition was filed under Chapter 11, which is usually used for judicial restructuring of the business, but in the case of Jerico Pictures, the documents show that the company may not have enough funds to pay legal fees and possible fines. According to financial reports, Jerico Pictures earned a net profit of $865,149 last year on revenue of $1.2 million, and in 2022 the profit was $475,526.
Filing for bankruptcy can probably help the company cope with the barrage of lawsuits. The first class action lawsuit against Jerico Pictures was temporarily suspended by a Florida court after filing for bankruptcy.
National Public Data offered data verification services to its customers, but somehow the company collected sensitive information on millions of Americans. In September, the National Public Data website reported that the company no longer sells personal data, but the damage has already been done.
Meanwhile, experts warn that attackers can use stolen data for a variety of attacks, including identity theft or phishing attacks. Possible schemes include impersonating tax authorities, relatives, or using fraudulent investment offers.
Source
