Equifax said its Chief Executive Officer Richard Smith will retire following a massive data breach that exposed personal details of 143 million Americans. Fred Katayama reports.
Equifax chief executive officer Richard Smith is retiring effective immediately. He's also losing his annual bonus. This following a massive data breach into the company's database that exposed personal information of 143 million Americans. The announcement comes a week before Smith is scheduled to testify about the hack before Congress. He is still expected to show up. The Federal Trade Commission and FBI are also looking into the breach. Nearly forty states have joined a probe of how Equifax handled the situation. Legal expert Michael Burg: (SOUNDBITE) MICHAEL BURG, ATTORNEY AND FOUNDING SHAREHOLDER OF BURG SIMPSON ELDREDGE HERSH AND JARDINE AND THE AUTHOR OF "TRIAL BY FIRE, ONE MAN'S BATTLE TO END CORPORATE GREED AND SAVE LIVES" (ENGLISH) SAYING: "They didn't do anything to protect the consumers and all their information. That's number one. Number two, they attempted to keep people from being able to sue them by having these incredible horrible provisions within their contract that will keep people from being able to sue them on a class action. Not they are trying to back off, but I don't think that that will work. Number three, I'm not sure he did, but many insiders sold their stock after they knew of the original cyber breach, and that just using insider information for their own benefit while they're leaving the consumer and the injured people out there to fend for themselves." Equifax shares were down on the news. They have fallen more than thirty percent since the disclosure of the breach.