National Public Data, one of the largest background check companies in the U.S., has filed for Chapter 11 bankruptcy in the Southern District of Florida. The filing comes after a cyberattack earlier this year exposed sensitive information, triggering lawsuits and investigations from several states. Jerico Pictures, the parent company of National Public Data, revealed that millions of Social Security numbers were stolen in the breach, which has led to substantial fallout.
In the court documents, the company’s president, Salvatore Verini, Jr., cited the ongoing legal battles and investigations by federal and state authorities as key reasons for the bankruptcy filing. Class action lawsuits have also been filed by victims of the breach, and the company has been unable to keep up with the financial demands of defending against these legal actions.
The company had disclosed in August that a data breach in late December 2023 resulted in personal information being sold on the dark web by April 2024. The breach exposed names, Social Security numbers, phone numbers, addresses, and dates of birth, creating widespread concern about the potential for identity theft. Despite cooperating with law enforcement, National Public Data has not provided a recent update on the ongoing investigations.
The scale of the breach was vast, affecting 1.3 million people according to official notices, but reports from cybersecurity researchers suggest the number could be much higher. A hacker using the alias “USDoD” claimed responsibility for the attack, posting a database on the Breached marketplace that allegedly contained 2.9 billion records. While there were duplicates, experts estimated that about 899 million unique Social Security numbers were compromised, affecting both living and deceased individuals.
National Public Data has not offered identity theft protection services to the victims, and questions remain about why their estimates don’t match the findings of security experts. The company has confirmed that it is facing significant liabilities due to the breach, including civil penalties from over 20 states and possible fines from the Federal Trade Commission.
The court filings reveal that National Public Data has between 50 and 99 creditors, with most being attorneys general from across the U.S. and its territories. Jerico Pictures has reported that its revenue has plummeted since the breach, with gross revenue falling from $1.15 million in 2023 to just $431,000 in 2024. The reputational damage caused by the breach has led to a mass exodus of customers, leaving the company unable to generate sufficient revenue to address the lawsuits and investigations.
The company also reported assets totaling just $39,225, along with some computer and server equipment, while noting it has no dedicated physical offices. Instead, Verini runs the business from his home in Pompano Beach, Florida, relying on independent data centers to store the company’s infrastructure.
As the legal battles continue, the company faces a difficult path ahead, with liabilities far exceeding its ability to pay. The data breach, labeled an “enterprise-wide data breach against the social security database,” has left National Public Data with a property loss valued at $1 million and an uncertain future.
Sponsored • TRJ Ads
Inquiries: contact@therealistjuggernaut.com
It seems like there’s data breaches and security threats everywhere you go nowadays 🙄 and companies just want more and more information from you. Very frustrating
I just found this comment from you in my spam. Mine go in spam folders as well—it’s ridiculous. WP needs to fix this issue. It’s an issue they’ve already known about for a good few years now, lol! But you’re right, companies want more and more information for their collections to sell it. They make a lot of money on personal information. As far as data breaches go, criminals use AI now, and using AI gets things done much quicker with more accuracy. That’s why there’s been a huge uptick in criminal activity. Thank you very much, Laura! I hope you have a great day. 😎