“Shareholders are suing ChoicePoint Inc. and its top executives after the company’s share price fell sharply following news that identity thieves had gained access to personal information about some U.S. residents that was held by the personal data vendor.
A class-action lawsuit has been filed in U.S. District Court for the Central District of California on behalf of those who bought ChoicePoint shares between April 22, 2004, and March 3, 2005, Radnor, Pa.-based law firm Schiffrin & Barroway LLP said in a statement Friday.
The suit charges Alpharetta, Ga.-based ChoicePoint and three top executives with keeping key information from the public in an effort to artificially inflate the price of the company’s stock.
Specifically, the suit alleges that the defendants knew that ChoicePoint’s measures to protect its data were inadequate, that the company knew it was selling data to illegal enterprises, that security breaches had occurred twice before and that the company had exposed more than 500,000 people to the threat of identity theft, according to the statement.”
I am not generally for suing as a way of getting things done. However, in a case like this where nothing talks like litigation and possible monetary retribution, all I can say is: Way to go shareholders! So glad to see someone who has some real pull with the the company taking some action on this.
NOTE: Originally posted: March 2005 (recreated from mangled original bambismusings.blogspot.com)