Target has agreed to pay $10 million to settle a class action lawsuit stemming from the data breach the company experienced in 2013.
According to reports, Target will pay the money into an escrow account. Those that have documentation proving they incurred losses related to the breach are entitled to up to $10,000.
The settlement was given preliminary approval today in court in Minnesota. Customers can file objections to the terms of the proposed settlement, and a final hearing has been set for Nov. 10, according to reports.
The attack compromised personal information and credit and debit cards belonging to millions of customers. In the aftermath of the breach, the retailer’s CEO and CIO resigned and were replaced.
Last month, the firm’s earnings report put the net expense of the breach at $162 million, with a gross total of $191 million. That amount was partially offset by a $46 million insurance receivable in 2014. In 2013, the company’s gross expense related to the breach was $61 million, which was offset by a $44 million insurance payment – bringing the net expense for the retail giant to $162 million.
“Unfortunately, there continues to be a large and growing market for stolen personal information, such as credit card numbers and account information,” said George Rice, senior director of payments, HP Security Voltage, in a statement. “And as long as there is a value on this data, thieves will continue to improve the sophistication of their attacks, making retailer and all consumer-facing businesses vulnerable.”
