Target Reaches $10M Class Action Settlement Over Data Breach

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UPDATE: A federal judge has preliminarily approved a $10 million class action settlement. Details on how to file a claim for the Target data breach settlement can be found here.

UPDATE 2: The Target data breach class action settlement received final approval on Nov. 17, 2015.

UPDATE 3: On Apr. 21, 2016, plaintiffs in the multidistrict litigation against Target Corp. over the infamous 2013 data breach are asking the Eighth Circuit Court to ignore claims made by an objector in the settlement.

UPDATE 4: On Feb. 1, 2017, the Eighth Circuit Court of appeals reversed the class certification and directed the district court to make a new ruling and explain its findings. According to the settlement website, claims will not be paid until class certification is resolved. This could take several more months. Please keep checking Top Class Actions for updates. We are following the case and will let our viewers know as soon as the class certification decision is made!UPDATE 5: On Aug. 22, 2019, Top Class Actions viewers started getting checks from the Target data breach class action settlementworth as much as $1,201.88.Congratulations to everyone who filed a claim and got PAID!

Target Corp. said that it will pay $10 million to settle the class action lawsuits filed against the giant retailer following a 2013 data breach that affected the personal information of 70 million customers as well as 40 million credit or debit card holders.

Class Members who are able to document how much they lost as a result of the data breach can obtain up to $10,000. Without documentation, plaintiffs will then split what is left of the settlement fund. The plaintiffs’ attorneys were also given an additional $6.75 to cover their fees and costs.

U.S. District Judge Paul A. Magnuson preliminarily approved the Target class action settlement agreement during a hearing on Thursday, according to one of the attorneys involved with the Target MDL.

The plaintiffs filed their motion to preliminarily approve the Target class action settlement on Wednesday, saying that the settlement was reached on March 9.

The Target class action settlement is for anyone living in the “United States whose credit or debit card information and/or personal information was compromised as a result of the data breach that first disclosed by Target on Dec. 19, 2013.”

There will be a dedicated website where Class Members will be able to file claims to take part in the class action settlement, but Class Members may also opt to mail in their claims. The motion promises that “the claim submission process is easy and efficient.”

In addition to monetary relief to Target customers affected by the data breach, the retailer will also “adopt and implement . . . data security measures,” which will “better safeguard customer data in the possession of Target.”

“In summary, the Settlement provides for significant monetary and non-monetary benefits to Settlement Class Members,” the motion to approve the class action settlement says. “The substantial benefits for the Class compare strongly and favorably to those provided in settlements involving other data breach lawsuits.”

Target was hit with over 33 class action lawsuits that were consolidated into a multidistrict litigation in the U.S. District Court of Minnesota, alleging that the company didn’t do enough to protect its customers’ personal and financial information from hackers that was reportedly stolen from Nov. 27 until Dec. 15, 2013.

In December 2013 it was reported that the credit card and Target debit card account information “had been exposed to fraud.” Almost two months later, on Jan. 10, it was reported that hackers had also stolen customer names, addresses, phone numbers and email addresses of 70 million Target customers.

As a result, the plaintiffs claimed in their data breach class action lawsuits, Target customers have been faced with fraudulent charges on their accounts as well as having to give up time and expenses in order to find fraudulent charges, cancel and reissue cards, credit monitory and identify theft prevention and spending limits placed on the accounts.

The charges against Target included negligence, violating Minnesota business law (Target’s headquarters are located in Minnesota), violating Minnesota’s Deceptive Trade Practice Act, violating California’s Unfair Competition Law, California’s Data Breach Act, and the consumer protection laws in other states.

The plaintiffs are represented by Heins Mills & OLson PLC, Nichols Kaster PLLP, Morgan & Morgan Complex Litigation Group PA, Girard Gibbs LLP, Milberg LLP, Chestnut Cambronne PA and Steuve Siegel Hanson LLP, among others.

Target is represented by Faegre Baker Daniels LLP, Morrison & Foerster LLP and Ropes & Gray LLP.

The Target Data Breach Class Action Lawsuit MDL is In re: Target Corp. Customer Data Security Breach Litigation, Case No. 0:14-md-02522, in the U.S. District Court for the District of Minnesota.