SAN FRANCISCO, March 1, 2005 (PRIMEZONE) -- Following the disclosure on February 15, 2005 that Alpharetta, Georgia-based data warehouser ChoicePoint, Inc. (NYSE:CPS) compromised the private customer data of 145,000 individuals, ChoicePoint's stock price declined by nearly 20 percent. ChoicePoint learned about the privacy breach in October 2004. But in between October 2004 and February 2005, ChoicePoint's two top executives - CEO Derek Smith and President Douglas Curling - made a combined $16.6 million in profit from selling company shares. The company claims that the stock trading was prearranged under a plan approved by the company's board, but the pattern and timing of the trading raises serious questions.
ChoicePoint also faces claims by consumers who are victims of the security breach. Green Welling is pursuing claims on behalf of a consumer whose Wells Fargo Bank accounts were illegally accessed. As required by California state law, ChoicePoint has sent letters to 34,000 people in California warning them that their personal information may have been inadvertently provided to a ring of criminals posing as legitimate companies. The Firm is requesting that Wells Fargo and ChoicePoint institute practices that will protect the security of the individuals whose data has not yet been breached. The firm is also requesting that Wells Fargo and ChoicePoint provide remedies for those individuals who suffered identify theft. In particular, the firm is requesting that these companies provide information and assistance to help individuals victimized by identity theft to protect or repair their credit. If these companies are able to make money by acquiring, using and selling customers' data, then these companies should be responsible for protecting those consumers damaged by security breaches.
If you are an investor in ChoicePoint securities or a consumer that received notice from ChoicePoint that your information has been compromised, please contact Green Welling at gw@classcounsel.com.
About Green Welling
Green Welling, a national class action law firm based in San Francisco, California, represents plaintiffs in personal finance cases, involving companies like ChoicePoint and Wells Fargo, as well as plaintiffs in product liability actions, securities lawsuits, derivative cases and antitrust actions. If you wish to discuss this action with us or have any questions concerning a potential class action, please contact Robert Green by email at gw@classcounsel.com or visit our website at www.classcounsel.com.