Daedong-USA, Inc., the U.S. subsidiary of Daedong(000490), Korea's No. 1 agricultural machinery maker, appears to be closing the chapter on a personal data leak that occurred locally last year. A settlement has been reached in a class-action suit filed by a former employee and others.
On the 5th, according to reporting by ChosunBiz, the U.S. District Court for the Eastern District of North Carolina held a settlement conference with both sides participating in the class-action lawsuit over a personal data leak filed by former employee A and others against Daedong-USA, Inc. Under Alternative Dispute Resolution (ADR) rules, the court required the attendance of a Daedong-USA, Inc. executive with settlement authority, attorneys for the plaintiffs and defendant, and insurance representatives, and a settlement was reached that day.
In Feb. last year, A filed suit in the Wake County court in North Carolina, alleging that Daedong-USA, Inc. suffered a cyberattack that leaked the names and contact information, dates of birth, bank account and card numbers, and medical and health-related information of about 10,000 customers. The complaint also stated that Daedong-USA, Inc. failed to comply with the U.S. Health Insurance Portability and Accountability Act, causing harm to customers.
When the case surfaced, Daedong-USA, Inc. asked that it be transferred from state court to federal court, because federal courts tend to scrutinize plaintiffs' "claims of harm" more strictly in data-breach cases. The lawsuit then moved to the U.S. District Court for the Eastern District of North Carolina, and the court categorized it for mediation. After two more people filed suit, the cases were consolidated into one.
With a settlement reached between the parties, the case has entered the final stretch. The formal settlement agreement is to be filed with the court within 45 days of the settlement term sheet's execution date. The specific settlement amount and victim compensation method have not yet been disclosed. The court designated all written and oral statements first presented during the mediation and settlement process regarding the nature of the case or its issues as confidential.
Once the formal settlement agreement is filed, some details on who is covered by the settlement, the size of compensation, and how the case will be closed could be disclosed. A legal industry source said, "The lawsuit is not completely over, but the parties have established the broad framework of a settlement," adding, "The court will decide whether to close the case after reviewing who is covered, the scale of compensation, and the victim compensation method."
Daedong established its North American subsidiary Daedong-USA, Inc. in 1993 and has focused its business on the United States and Canada. Its brand name is "KIOTI," and it sells tractors, utility vehicles, and compact construction equipment. Last year, North America accounted for 58% of total sales on a consolidation basis. Daedong-USA, Inc. posted sales of 167.3 billion won in the first quarter this year.