Target Corp. has set up a $10 million fund to settle a class-action lawsuit following the retailer’s massive 2013 data breach.
According to USA Today, each victim of the breach will be eligible for up to $10,000 compensation if they can prove “that they lost money due to hacker activities,” something that will be very difficult for most to do. According to the settlement, victims must be able to prove that one of the occurred:
– Unauthorized, unreimbursed charges on their credit or debit card
– Time spent addressing those charges
– Fees to hire someone to correct their credit report
– Higher interest rates or fees on the accounts
– Credit-related costs
– Costs to replace their identification, Social Security number or phone number
Mark Melodia, founder of the information technology, privacy and data security practice at the law firm of Reed Smith in New York City, stated that some aspects of the settlement are unique. “First, the amount of attorneys’ fees contemplated by this deal is at the high end of the historical range, even for multi-district litigation proceedings. Second, it is unusual for a major company to agree to follow certain security practices dictated by a settlement with private class action lawyers and then imposed by a final Order of the Court.”