Target settlement agreement

It seems as though we have been writing about this case for a lifetime.  Target Corporation’s data breach saga came one step closer to a conclusion this week.  On Tuesday, Target reached an $18.5 million settlement with 47 states and the District of Columbia to resolve the states’ investigation into the company’s 2013 data breach.   Alabama, Wisconsin, and Wyoming were not part of the settlement. Continue Reading Target Reaches $18.5 Million Dollar Settlement in Data Breach with States

According to a report published today in The Wall Street Journal, Target and MasterCard are close to reaching a settlement of the claims of MasterCard-issuing institutions in connection with Target’s 2013 data breach.  The settlement would reimburse the cost of reissuing debit and credit cards compromised by the breach, as well as a portion of the resulting fraudulent charges made using stolen payment card numbers.  A $20 million settlement would be comparable to the amount paid by TJX Cos. to MasterCard in connection with the 2008 TJX data breach.  News of a potential card issuer settlement comes less than one month after Target and class counsel filed papers seeking court approval of a proposed class settlement of consumer claims arising from that same data breach.  Sources informed the Wall Street Journal that a definitive MasterCard settlement could be announced as soon as this week.

On March 18, 2015 – just three months after denial of a motion to dismiss consumer claims arising from Target’s 2013 data breach – Target and the consumer class filed papers seeking approval of a settlement.  The proposed settlement agreement creates a  $10 million cash fund to be paid out to class members claiming actual damages arising from the settlement.  Settlement funds will be distributed in a claims-made process to be run by a settlement administrator (the cost of which will be borne by Target).  The maximum claim amount is $10,000.  Claims without supporting documentation are capped at lower dollar amounts.  Unclaimed funds will not revert to Target, but will be redistributed to class members submitting claims or as otherwise directed by the Court.  The settlement also calls for non-cash relief consisting of the adoption of certain data security protection practices and appointment of a chief information security officer.  Finally, class counsel have indicated that they will apply for $6.75 million in attorneys’ fees.

Why the quick settlement?  Continue Reading Precedent and the Price Explain Why Target and the Consumer Class Agreed to an Early Data Breach Settlement