Target Corporation (NASDAQ:TGT) has agreed for a settlement that will cost $10 million in lawsuit that followed the controversial data breach of 2013.
Target Corporation (NASDAQ:TGT), the American retailing company, is one of the largest retailers in USA, second only to Walmart (NASDAQ:WMT). A massive theft of credit card and debit card information occurred in December 2013. Around 40 million customers were victims of this data theft. The company promptly alerted its customers and tried to investigate the data breach. None the less, it was pulled in a lawsuit that would put the company’s credibility at stake.
The theft apparently occurred through software installed on swipe machines that customers used to pay for the merchandise at Target’s retail stores.
The company is ready for settlement. Molly Snyder, spokesperson for Target Corporation (NASDAQ:TGT), said that the company looks forward to the resolution of the lawsuit and is pleased that the process is moving forward.
According to the 97 page settlement, a fund of $10 million will be made available for the data breach victims. Each victim of the data breach will be eligible for compensation up to $10,000. Company has prepared a claim form for the victims. It includes questions like whether they have used their debit or credit cards at any of Target stores, in November 27 to December 18, 2013 (the period in which data theft had occurred). The claim form also asks if the victim has received the breach notice which the company had issued to its customers, following the theft.
The famous data breach occurred in holiday shopping season, affecting all 1,797 retail stores of Target Corporation (NASDAQ:TGT). Credit card and debit card information of 40 million customers were stolen. The scale was so huge that Department of Justice had to hold its own investigation. Around 15 lawsuits were filed against the company. The company appears have sought a costly resolution. But some sources say that it will be difficult for victims to prove their claim. Court’s prefer a proof actual harm than just an invasion of privacy.
Target Corporation’s (NASDAQ:TGT) settlement is followed by its recent layoff of 13 percent of its workforce. It remains to be seen if the settlement actually benefits the company or not.