Target proposes settlement in data breach case, agrees to pay $10m
Target US has agreed to pay-out $10m in a suggested settlement of a class-action lawsuit, filed in response to the 2013 data breach in which the personal information of millions of shoppers was compromised.
According to Target, the breach, which occurred during 2013’s holiday season, put more than 40 million credit cards at risk, ultimately resulting in the theft of the personal information of about 110 million people.
While the proposal still needs to be signed-off by a federal judge, its passing would entitle affected customers to a pay-out of up to $10,000.
Victims would be able to file a claim through a secured website.
In addition, Target would have to take special measures to prevent a reoccurrence of the data breach. The data proposal suggests that the retailer would hire a chief data officer and update its security.
The breach has already cost the retailer $162m.