Target Data Breach Settlement With Banks Gets Final OK

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By Daniel R. Stoller

May 12 — A federal judge gave final approval May 12 to a $39 million class action settlement over allegations by banks and credit unions against Target Corp. for losses from a 2013 holiday-season data breach.

Judge Paul A. Magnuson of the U.S. District Court for the District of Minnesota approved the settlement, under which Target will contribute $20 million to a general settlement fund and more than $19 million to a separate recovery program handled by MasterCard Inc.

Separate from the settlement, Target will pay about $19.9 million in attorneys' fees to the class counsel and will pay $100,000 total to the class representatives.

The class action stemmed from a 2013 data breach where hackers stole card data and personal information from tens of millions of shoppers (12 PVLR 2133, 12/23/13).

Target has previously settled with consumers affected by the breach for $10 million (14 PVLR 2145, 11/23/15) and with Visa Inc. for $67 million (14 PVLR 1564, 8/24/15).

Zimmerman Reed, PLLP and Chestnut Cambronne PA are class counsel. Morrison & Foerster LLP; Ropes & Gray LLP; Davis Wright Tremaine; Faegre Baker Daniels LLP; Armstrong Teasdale, LLP; Hinckley, Allen & Snyder LLP and Maschoff Brennan are counsel for Target.

To contact the reporter on this story: Daniel R. Stoller in Washington at dstoller@bna.com

To contact the editor responsible for this story: Jimmy H. Koo at jkoo@bna.com