Target Corp. has submitted court documents outlining a $10 million settlement with customers whose personal information was stolen in its 2013 data breach, according to multiple news reports.
NBC News says court documents were filed Wednesday in federal court in Minneapolis to settle the class-action lawsuit brought by customers whose credit and debit accounts were hacked as a result of the data breach during the 2013 holiday shopping season.
A $10 million fund will be established for victims of the breach who can prove they suffered monetary losses. Each victim will be eligible for up to $10,000 compensation.
Target also agreed to appoint a chief information security officer to oversee information security and to train employees in securing customers' personally identifiable information, USA Today reports.
According to the newspaper, customers can receive compensation if they have experienced at least one of the following, and have documentation to support their claims of reimbursement:
- Unauthorized, unreimbursed charges on their credit or debit card
- Time spent addressing those charges
- Fees to hire someone to correct their credit report
- Higher interest rates or fees on the accounts
- Credit-related costs
- Costs to replace their identification, Social Security number or phone number
A Target spokeswoman said in a statement: "We are pleased to see the process moving forward and look forward to its resolution."
According to NBC, the two sides reached the agreement last week, and was expected to be discussed Thursday in federal court in St. Paul.
The massive data breach at Target was revealed in December 2013. Thieves hacked as many as 40 million accounts that affected as many as 110 million people.
Target admitted in March 2014 that its online security protection detected potentially malicious activity in the weeks before the data breach but did not take immediate action. In the wake of the data breach, CEO Gregg Steinhafel resigned and was succeeded by Brian Cornell, a former PepsiCo and Wal-Mart executive.