Target Settles Class Action Lawsuit for $39 Million
Last week, Target agreed to a $39 million settlement to end a class action lawsuit that had been filed by several banks in the United States.
The financial institutions, including Umpqua Bank, Mutual Bank, Village Bank, CSE Federal Credit Union, and First Federal Savings of Lorain, claimed to have lost millions after a December 2013 data breach, when hackers gained access to Target’s system and stole the financial information of more than 40 million customers. After the attack, banks had to reimburse customers who had lost money.
The banks, which service MasterCard, filed their suit after rejecting an earlier $19 million deal. While MasterCard initially approved that deal in April, the banks rejected it.
Charles Zimmerman, the attorney for the banks, told CNN Money that he is “very pleased” that the banks pursued litigation and added that they “will be compensated in a more appropriate manner–based upon what they really lost.”
This is the latest in several Target settlement payouts. In August, Target settled with Visa for $67 million, and in March, they settled with customers who had brought a class action lawsuit for $10 million.