Skip to main content

Target, banks reach $39M settlement for data breach costs

  • Author:
  • Updated:

It's been two years since a massive data breach resulted in millions of Target customers having personal information stolen, but the financial repercussions are still being sorted out.

The Minneapolis-based retailer is one step closer to the end however after it reached a $39 million settlement to repay banks that issued credit or debit cards compromised in the data breach, an email news release said Wednesday.

Target will pay up to $20.25 million directly to settlement class members, and $19,107,939.38 to MasterCard to fund the Account Data Compromise program, according to the agreement. A proposed $19 million settlement with MasterCard had been rejected this past spring.

The money is essentially to pay back banks, who spent millions of dollars reimbursing customers for fraudulent purchases and sending out new payment cards, Reuters writes.

According to The Hill, the attack cost Target $162 million through Jan. 31 of this year.

In the 2013 holiday season breach, hackers stole the payment card information of an estimated 40 million customers, plus other personal information from millions more.

More on the settlement

Who's eligible for the new settlement?

U.S. financial institutions (such as banks) that issued payment cards (credit or debit cards, for example) that were identified as being put at risk from the breach.

The agreement still has to be approved, first at a preliminary hearing Wednesday and then at a final hearing next year. If it's given the OK, the release says it will the "the first class-wide data breach settlement ever reached on behalf of financial institutions."

In August, Target reached a settlement with Visa that was worth an estimated $67 million.

A $10 million settlement with affected customers was agreed to in March.

Next Up

police tape

3 at trauma centers in critical condition after rural MN attack

Two victims and the alleged attacker are in critical condition.

grinch neighbor

Neighborhood 'grinch' sends letter to Burnsville family over holiday lights

A Burnsville family's holiday decorations were the subject of an anonymous complaint.


Anthropologie shutters Grand Avenue store, opening planned for Rosedale Center

The popular holiday shopping weekend marked the last for customers of the Grand Avenue store.

hospital, emergency room

Woman found on side of highway after hit-and-run

The 41-year-old was airlifted to a hospital with life-threatening injuries.

Jorden Nicole Borders

Charges: Minnesota woman tortured her kids, removed boy's blood

Warning: This story contains upsetting content.

first snow

Will narrow band of 6+ inches of snow hit Twin Cities Tuesday?

The NWS says a band of 6+ inches is looking likely. It's now a matter of where.


Siblings, ages 19 and 14, killed in crash on icy MN highway

The crash happened around 1:15 a.m. Saturday in Carlton County.

Nicholas Kraus

Man sentenced for fatally striking woman during Uptown protest

Nicholas Kraus, 36, of St. Paul drove into a protest in Uptown last year, killing Deona Marie Knajdek.

Flickr - police lights squad siren - Edward Kimmel

Fleeing suspect crashes into vehicle in Woodbury, 2 injured

The crash occurred Friday afternoon after a pursuit with Woodbury police.

Screen Shot 2022-11-26 at 2.34.44 PM

Yes, that's MN native Jenny Taft in a State Farm commercial

Jenny Taft got her broadcasting career started in Minneapolis in 2011.

crime scene tape - police tape

23-year-old woman critical after shooting in Plymouth

A 23-year-old woman was shot Friday night in Plymouth.

white Christmas

2 MN towns among most 'magical' winter locations in the country

The list was compiled by Trips Discover and published earlier this month.