Bloomberg Law: Privacy & Data Security brings you single-source access to the expertise of Bloomberg Law’s privacy and data security editorial team, contributing practitioners,...
By Jimmy H. Koo
A class of banks affected by a Kmart Corp. payment card data breach is on track to recover $5.2 million in related costs after gaining a federal court’s conditional approval of a no-fault settlement with the discount retailer ( Greater Chautauqua Fed. Credit Union v. KMart Corp. , N.D. Ill., No. 1:15-cv-02228, 5/19/17 ).
The U.S. District Court for the Northern District of Illinois May 19 conditioned the class settlement on final approval of the settlement fund allocation plan, requests for attorneys’ fees and costs, and the setting of incentive awards to the named individual plaintiffs.
According to the class complaint, filed by credit unions, banks, and other financial institutions, Kmart failed to employ adequate security measures despite the known threat of data breaches. As a result of the hacking breach, plaintiffs were forced to cancel or reissue affected payment cards and refund cardholders to cover the costs of unauthorized transactions, the plaintiffs alleged.
Without admitting any wrongdoing, Kmart—which is owned by Sears Holding Corp.—agreed to settle the class allegations by paying $5.2 million and implementing changes to its data security protocols.
A status hearing is scheduled for June 16.
Plaintiffs are represented by Murray Law Firm; Scott & Scott Attorneys at Law LLP; Carlson Lynch Sweet & Kilpela LLP; Hausfield LLP; Lockridge Grindal Naeun PLLP; Lite DePalma Greenberg LLC; and Miller Law LLC. Kmart is represented by King & Spalding LLP and Polsinelli PC.
To contact the reporter on this story: Jimmy H. Koo in Washington at email@example.com
To contact the editor responsible for this story: Donald Aplin at firstname.lastname@example.org
Full text of the settlement minute entry is available at http://src.bna.com/o5d.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)