The Federal Trade Commission has mailed reimbursement claim forms to an additional 1,500 consumers who may have been exposed to identity theft due to alleged security lapses at information broker ChoicePoint Inc. The 1,500 letters follow 1,400 claim forms the agency sent out in December 2006.
The FTC has also created a Web site — www.ftc.gov/choicepoint — which provides consumers who did not receive a letter an opportunity to download a claims form and obtain information about the claims process. Consumers may also call 1-888-884-8772 to obtain information on filing a claim. Claims forms must be submitted to the FTC no later than June 22.
In 2005, ChoicePoint announced it had sold consumer information to clients who were later found to be identity thieves. As part of a settlement, ChoicePoint was required to provide $5 million to be used to compensate consumers affected by the security lapse. Potential compensation will be based, in part, on the number and amount of valid claims the FTC receives.
Separately, ChoicePoint reported that during first quarter 207, it generated $262.8 million in revenue, up from $253.4 million in first quarter 2006. The company’s net income was static, clocking in at $30.9 million, compared with $30.6 million a year ago. The quarter ended March 31.
While a good chunk of its fortunes came as a result of acquisitions, ChoicePoint said revenue from pre-existing operations rose 2% over first quarter 2006’s levels, driven primarily by growth in insurance services and government services.
ChoicePoint purchased 2.3 million shares of its common stock for $90.1 million. Since it announced a buyback policy in 2005, the company has bought 16.6 million shares of its stock, representing 18.4% of the total shares outstanding at the time of the announcement.
During the quarter, ChoicePoint allocated $1 million to the money it owes stemming from the data breach.
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