Latest in Culture

Image credit:

Target settles data breach lawsuit with banks for $39 million

Pending a court's approval, the retailer will settle legal proceedings with affected financial institutions.
Billy Steele
12.02.15 in Security
35 Shares
Share
Tweet
Share
Save

Sponsored Links

Nearly two years after Target's massive data breach leaked customer payment info, the retailer has reached a settlement with financial institutions. The company agreed to pay $39 million to the likes of MasterCard and banks who filed claims stemming from the 2013 incident. More specifically, Target will pay $20 million to the settlement class and $19 million to MasterCard to fund its Account Data Compromise program that ties into the hack. These figures are in addition to the $10 million settlement that the retail company already agreed to with lawyers for individual victims and its $67 million settlement with Visa.

The breach, initially reported in December 2013, included the unauthorized access of 40 million credit and debit card numbers. To make matters worse, Target ignored alerts about the hack for 12 days. A preliminary approval hearing is set to take place in the in the US District Court for the District of Minnesota today, with a final approval hearing slated to take place next year. What's more, the legal proceedings highlight the fact that banks and other financial institutions shouldn't have to foot the bill for data breaches that are out of their control.

[Image credit: Getty]

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
35 Shares
Share
Tweet
Share
Save

Popular on Engadget

Korg Volca Modular synth review: As weird as it is affordable

Korg Volca Modular synth review: As weird as it is affordable

View
Lawmakers urge the FCC to seek public input on T-Mobile / Sprint merger

Lawmakers urge the FCC to seek public input on T-Mobile / Sprint merger

View
YouTube Originals will be free to watch starting on September 24th

YouTube Originals will be free to watch starting on September 24th

View
Nintendo will replace a newly purchased Switch with newer model

Nintendo will replace a newly purchased Switch with newer model

View
Amazon sent 20 order confirmations to the wrong people

Amazon sent 20 order confirmations to the wrong people

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr