Cyberattack prompts National Public Data bankruptcy filing

Numerous class action lawsuits stemming from a significant data breach this summer that compromised nearly 899 million Americans' Social Security numbers have prompted leading background check service National Public Data to file for bankruptcy, reports The Record, a news site by cybersecurity firm Recorded Future.

Such a development comes months after National Public Data admitted the exposure of a database stolen from a December 2023 breach beginning in April, which was then followed by civil penalties being sought by over 20 states as well as potential fines from the Federal Trade Commission. "The reputational impact has driven customers from the Debtor. The Debtor is likely liable through the application of various state laws to notify and pay for credit monitoring for hundreds of millions of potentially impacted individuals. As the debtor's schedules indicate, the enterprise cannot generate sufficient revenue to address the extensive potential liabilities, not to mention, defend the lawsuits and support the investigations. The Debtor's insurance has declined coverage," said Jerico Pictures, the parent firm of National Public Data.