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,...
May 21 --Target Corp. said it couldn't predict in a May 21 Form 8-K filing with the Securities and Exchange Commission what its total specific costs might be to respond to a massive payment card data breach.
In December 2013, Target revealed that hackers stole card data and personal information from tens of millions of shoppers.
In March, Target told a Senate panel that it had clues about the attack weeks before responding and was exploring why it took so long to react.
Form 8-K filings are required when publicly traded companies face “unscheduled material events or corporate changes,” according to the SEC. Target said it filed the new 8-K report because it released a public statement on its first quarter earnings in which it announced a drop in first quarter earnings as well as cutting its annual profit outlook.
In January, Target said the breach had resulted in significant direct costs.
In May, Target announced that its chief executive officer, Gregg Steinhafel, was stepping down as a result of the breach and its effect on the company's reputation with customers .
But the retail giant now says it cannot put a dollar figure on the expenses related to the breach. “At this time, the Company is unable to estimate future expenses related to the data breach that occurred in fourth quarter 2013,” the 8-K filing said.
Expenses may include payments associated with potential claims by the payment card networks for alleged counterfeit fraud losses and non-ordinary course operating expenses (such as card re-issuance costs), REDcard fraud and card re-issuance expense, payments associated with civil litigation, governmental investigations and enforcement proceedings, expenses for legal, investigative and consulting fees, and incremental expenses and capital investments for remediation activities.
The 8-K report concluded that the breach response costs “may have a material adverse effect on Target's results of operations in second quarter and full-year 2014 and future periods.”
Full text of Target's May 21 Form 8-K filing is available at http://op.bna.com/pl.nsf/r?Open=dapn-9kbkkp.
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)