Target close to settling data breach lawsuit for $10 million


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.

Next Up

st. paul winter carnival ice sculpture

3 winter festivals in the Twin Cities this weekend

The Great Northern, The City of Lakes Loppet and St. Paul Winter Carnival are all underway.

police lights

Suspect led deputies on 23-mile chase, hid in the woods

The suspect was arrested after a few hours hiding in a wooded area in Meeker County.

Kirk Cousins

Coller: Will the Vikings be the only ones left with QB stability in the NFC?

Matthew Coller writes a weekly Vikings column for BMTN, with more of his work found at Purple Insider.

La Velle E. Neal III

Twins reporter La Velle E. Neal III to become Star Tribune sports columnist

The long-serving Twins reporter has received a promotion.


State Patrol investigating fatal crash near Duluth

The crash was reported around 6:15 a.m. Wednesday.

eden prairie police squad car

Carjacking reported outside shopping center in Eden Prairie

One of the suspects reportedly displayed a weapon.

court gavel

8 people charged in Medicaid fraud scheme totaling $860K

Collectively, they're charged with 46 counts of felony theft.


Minnesota gets mixed grades on its tobacco report card

In Minnesota, the economic cost due to smoking is $2.519 million with 5,910 deaths per year attributed to smoking.

Hardy Wills-Traxler

Charges: Man stabbed his father, set his home on fire

The 25-year-old has been charged with second-degree murder and first-degree arson.