Judge Allows Class-Action Lawsuit Against Target in Data Breach

Judge Allows Class-Action Lawsuit Against Target in Data Breach
Image credit: garomero21 | Foap.com

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
2 min read
This story originally appeared on Reuters

A U.S. judge on Tuesday certified a class action against Target Corp brought by several banks over the retailer's massive data breach in 2013.

U.S. District Judge Paul Magnuson in St. Paul, Minnesota, said the banks could pursue their claims together over the breach, which compromised at least 40 million credit cards during the holiday season.

In a statement, Charles Zimmerman, one of the lead lawyers representing the banks, said, "This important ruling brings financial institutions one step closer to collectively holding Target accountable for its unprecedented data breach."

Target spokeswoman Molly Snyder said the company was "disappointed" and would evaluate its next steps after reviewing the decision.

The ruling, which makes a settlement with the banks more likely, comes four weeks after Target agreed to pay as much as $67 million to financial institutions that issue Visa Inc cards, in a deal struck directly with the credit card network.

Earlier this year, a proposed $19 million settlement with MasterCard Inc fell through when not enough banks accepted the agreement.

It is not clear how many Visa card issuers accepted the terms of that deal by the deadline of Sept. 4.

Snyder declined to comment on the number of institutions that have agreed to participate in the Visa deal but emphasized that the class action includes only those card issuers that have not settled their claims.

Attorney Zimmerman has said the Visa deal, like the failed MasterCard settlement, does not fully reimburse banks for their losses and was negotiated without input from the plaintiffs.

Carrie Hunt, the general counsel for the National Association of Federal Credit Unions, praised the judge's decision and said it "constitutes one important avenue for recovery" for credit unions affected by the breach.

The Target breach was one in a series of high-profile data security failures to hit major retailers, including Home Depot Inc and Staples Inc.

(Additional reporting by Nandita Bose in Chicago)

More from Entrepreneur
Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization
Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • A 1-year Entrepreneur magazine subscription delivered directly to you
Make sure you’re covered for physical injuries or property damage that occur at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur