Still a Target: Court Certifies Bank Class Claims Against Store Following Data Breach
Although Target has tentatively settled consumer data breach class action lawsuit claims, the store remains within the crosshairs from the plaintiffs’ class action lawsuit bar. On September 15, a Minnesota federal district court certified a category of: “[a]ll entities within the U . s . States and it is Territories that issued payment cards compromised within the payment card data breach which was openly disclosed by Target on December 19, 2013.” Rejecting the Minnesota-based retailer’s argument that variations in condition law precluded certification, a legal court held that Minnesota law put on the claims of class people. A Legal Court also discovered that plaintiffs’ claims for negligence, breach of Minnesota’s Credit Card Security Act, and negligence by itself were prone to common proof, holding that: “[w]hether particular actions – reissuance [of debit and credit cards], blocking accounts, reimbursing fraudulent charges, having to pay for customers’ fraud monitoring – are reasonable actions when confronted with an information breach can be established class-wide and don’t have to be examined regarding each lender individually.” Questions of individualized damages calculations also unsuccessful to defeat certification a legal court noted that: “[s]hould classwide damages ultimately prove unworkable, a damages class could be decertified and damages questions remained for determination following the liability phase concludes.”
Up to now, the banking claims have previously proven a larger expense towards the store compared to consumer class claims. Whereas Target’s consumer class settlement results in a $ten million claims fund, the store has decided to pay $67 million to stay claims by banks that issued Visa cards compromised within the breach. Additionally towards the certified banking class claims, Target is facing pending shareholder derivative litigation in Minnesota federal district court.
In re Target Corp. Customer Data Security Breach Litig., MDL No. 4-2522 (D. Minn. Sept. 15, 2015).