Target Reaches $67M Settlement With Visa Over Data Breach
Target Corp. and Visa Inc. have agreed to a $67 million settlement the retail giant will pay as a result of its 2013 data breach.
Both companies confirmed that a deal had been struck, according to the Wall Street Journal. After a long negotiation period, Target said it will cover costs incurred by Visa to reissue credit and debit cards to its customers. Some 40 million credit and debit card numbers were exposed during the data breach, considered among the largest breaches in recent years.
Although both companies have landed on an agreement, the $67 million exchange is not a sure thing. Charles Zimmerman of Zimmerman Reed PLP, a co-lead plaintiff for the class action lawsuit forming against Target, believes Visa should not take the deal.
“This settlement with Visa is Target’s latest effort to avoid fully reimbursing financial institutions for the losses suffered as a result of its data breach,” Zimmerman said in a statement. “Just as with the proposed MasterCard settlement – resoundingly rejected by financial institutions in May – this deal was negotiated under a veil of secrecy without the involvement of the court or the court-appointed legal representatives of financial institutions. Importantly, it fails to fully reimburse card issuers for the substantial losses suffered from the Target data breach.”
News of today’s agreement comes nearly three months after a proposed $19 million settlement between Target and MasterCard fell through. In that case, at least 90 percent of the card issuers needed to accept the $19 million dollar settlement, but the threshold was not met.
Zimmerman and his fellow plaintiffs are currently seeking for “damages far greater than what has been offered” by Target as of yet. A hearing over the potential class action settlement is scheduled for September 10.
In late July, 11 law firms organizing a class action lawsuit against Target over the data breach claimed the Minneapolis retailer was hiding court filings under a “confidential” status, making the law documents largely inaccessible.
Read more about Target’s $67 million settlement with Visa here.