Target to shell out $10 million to settle class action suit
Posted by: Timothy Weaver on 03/20/2015 08:50 AM
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US retail giant Target is set to shell out $10 million to settle a class action suit that was brought about by the breach that occurred in 2013 and opened up 40 million credit and debit cards and personal information from as many as 100m+ customers.
Reuters reports that court documents says that the company is prepared to deposit the $10 million into an interest-bearing escrow account that is earmarking $10,000 per customer.
A dedicated website would be set up to handle the processing of claims, the newswire said.
Target spokeswoman Molly Snyder said in a statement: “We are pleased to see the process moving forward and look forward to its resolution.”
Reports have indicated that the breach was made possible by a spear-phished attack that targeted employees at a Target contractor and air conditioning systems provider Fazio Mechanical Services. At the time, the contractor was only running free AV protection.
The breach has already cost Target over $140m, according to regulatory filings, and forced the resignation of its CIO and likely contributed to the CEO’s departure.
It effectively values the damages per card at just 25 cents (40 million card details, $10 million settlement) or personal details at 9 cents per person.
Source: InfoSecurity
Reuters reports that court documents says that the company is prepared to deposit the $10 million into an interest-bearing escrow account that is earmarking $10,000 per customer.A dedicated website would be set up to handle the processing of claims, the newswire said.
Target spokeswoman Molly Snyder said in a statement: “We are pleased to see the process moving forward and look forward to its resolution.”
Reports have indicated that the breach was made possible by a spear-phished attack that targeted employees at a Target contractor and air conditioning systems provider Fazio Mechanical Services. At the time, the contractor was only running free AV protection.
The breach has already cost Target over $140m, according to regulatory filings, and forced the resignation of its CIO and likely contributed to the CEO’s departure.
It effectively values the damages per card at just 25 cents (40 million card details, $10 million settlement) or personal details at 9 cents per person.
Source: InfoSecurity
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