Class Members Clash Over $10M Target Data Breach Settlement

Plaintiffs in a Target data breach class action lawsuit insist the resulting settlement agreement is fair, despite objections from a Class Member.

Last year, U.S. District Judge Paul A. Magnuson put his signature on the $10 million Target data breach settlement. But an objection raised by one Class Member led the Eighth Circuit to ask the lower court to reconsider whether all Class Members would be fairly and adequately treated under the settlement’s terms.

The Eighth Circuit wasn’t convinced that class representatives could fairly and adequately represent Class Members who are unable to prove loss – and who therefore would not qualify for a settlement payment. The circuit court expressed concern about the potential for intraclass conflict between two groups of Class Members, based on which ones could or could not prove loss.

The Target data breach happened close to the year-end holiday shopping season in 2013. When the massive data breach occurred, it affected the security of over 40 million credit or debit cards and the PPI (personal identifiable information) of 110 million people. Notification of the breach was distributed to 61 million potentially affected persons.

The breach eventually led to the current Target data breach class action lawsuit and settlement. Judge Magnuson granted final approval of the settlement in November 2015. But soon after that, Olson brought his objections to the appeals court, arguing that the settlement would not be fair to those who had not yet experienced quantifiable loss.

Plaintiffs Stand by Target Data Breach Settlement

In opposing Olson’s objections, the lead plaintiffs say the supposed intraclass conflict is illusory. They contend that the interests of all Class Members are adequately aligned, and they say that those who are not yet affected may make a claim for future losses should they occur. The settlement offers significant relief for all Class Members, according to the plaintiffs.

The plaintiffs say that Olson does not substantively cite any instance or reason for these concerns.

“The interests of the plaintiffs are aligned with, and not antagonistic to, those of all class members (consumers proving loss and those who cannot) and those whose common interest were aggressively pursued by…class counsel in prosecuting and settling this case on favorable terms,” the plaintiffs said, according to Law360. The plaintiffs asked the district court to reject further unsubstantiated concerns by the Eighth Circuit court.

The Target data breach settlement, made public in March 2015, allows consumers who can document their losses a maximum payout of $10,000. Consumers without documented losses will be allowed an equal amount of the remainder of the funds after primary (documented plaintiffs) have been paid.

The requirements of the settlement also clearly stated that Target was to establish a means for monitoring security events, including hiring a higher-level executive to assist with this process.  Target is also required to provide greater security training in protecting PPI and credit and debit card information.

UPDATE: On Aug. 22, 2019, Top Class Actions viewers started getting checks from the Target data breach class action settlement worth as much as $1,201.88. Congratulations to everyone who filed a claim and got PAID!

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