Should We Praise Target for Settling Data Breach Lawsuit?

Target will pay $10 million in lawsuit settlement to customers hurt by the company’s massive 2013 data breach. Should we be thankful?
Should We Praise Target for Settling Data Breach Lawsuit?
A sign with the Target dog mascot is seen inside a Target store in Albany, Ca., on May 15, 2006. Photo by Justin Sullivan/Getty Images
Petr Svab
Petr Svab
reporter
|Updated:

Target will pay $10 million in a lawsuit settlement to customers hurt by the company’s massive 2013 data breach, U.S. District Judge Paul Magnuson confirmed on Thursday.

“Target really needs to be commended for being willing to step up,” the judge said.

But the settlement came only after Target tried and almost succeeded at stopping the lawsuit.

For three weeks during the December 2013 holiday shopping season, hackers stole data of about 110 million Target customers, including information from 40 million payment cards.

Over 100 people sued Target for fraudulent charges on the leaked cards and also for losing access to their accounts and being forced to pay late fees, card-replacement fees, and credit monitoring costs.

The plaintiffs accused the company of negligence, breach of contract, and several other transgressions.

But Target moved to dismiss the suit and in December the judge indeed dismissed most of the allegations.

Petr Svab
Petr Svab
reporter
Petr Svab is a reporter covering New York. Previously, he covered national topics including politics, economy, education, and law enforcement.
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