Target, a Minneapolis-based retailer, has agreed to settle a class-action identity theft lawsuit for $469,000 and establish a $10 million fund to compensate victims. The settlement will fund the states’ costs of consumer education and enforcement as well as attorney fees. The Minneapolis-based company will also take steps to limit network access and implement two-factor authentication. The state payments will also go to consumer protection law enforcement. The amount is significant, but there’s no reason to feel discouraged.
$469,000 in settlement
A Minneapolis-based retail company has agreed to pay victims more than $469,000 to settle a class-action lawsuit filed over the theft of their personal information. The agreement stipulates that Target must pay victims’ credit report correction costs, additional interest rates and fees, and expenses associated with replacing stolen personal information. Target has also agreed to make reforms related to its data breach. This is the first of several payments made by the retailer since the data breach occurred in 2013.
In September 2014, the company notified consumers of a data breach. However, the company failed to take the proper steps to protect customers’ data. The breach occurred in November 2013 and compromised the credit card and personal information of more than 60 million people. The Target settlement amounts to the highest valuation of a multi-state investigation of its data breach. However, the company did not fully address the extent of the data breach and is still negotiating with the government over any additional requirements that may apply.
$10 million fund
A federal judge has approved a settlement in a Target identity theft lawsuit fund of $10 million. After the massive credit card hack in late 2013, Target has pledged to pay out up to $10 million in reimbursement to affected consumers. The settlement can cover up to $10,000 in compensation for each claim, although the amount each individual will receive will likely be less after attorneys’ fees. The settlement will cover customers who have yet to receive reimbursements from their credit card companies.
According to court documents, Target has agreed to put $10 million into an escrow account, which will never revert to the company. The money will be split among victims who prove their losses. Thousands of Target customers may file suits, but most of them will not have any way to prove how much they’ve lost because they are unable to show the monetary costs. Target plans to handle most of the lawsuit claims through a website. The court documents state that Target will create the site within 10 days of the settlement.
Standing issues in identity theft lawsuits
While most circuits agree on three factors, they differ in their applications. For example, the Third and Fourth Circuits have not yet reached a consensus on whether an individual has the standing to file a lawsuit under Article III. Several courts have focused on the type of stolen information, such as payment card numbers. The Seventh Circuit, on the other hand, has found that the presence of payment card information alone is enough to create standing.
In determining standing to bring a data breach lawsuit, a plaintiff must first demonstrate that he or she was personally harmed by the breach. While this may not be a high-profile case, it is important to consider the potential impact of the breach on a person’s identity. The court can also consider the potential for future harm to a person’s reputation and financial stability. However, it must be noted that the Second Circuit has not yet decided on whether a plaintiff has Article III standing to bring a data breach lawsuit.
Unjust enrichment claim
A Delaware court recently denied the plaintiff’s unjust enrichment claim. The plaintiff had asserted that he had received a portion of the payment made to a target identity theft company in return for protecting him from further harm. The Court rejected this claim because the plaintiff failed to plead that he benefited from another defendant’s wrongdoing. The Court also noted that Ares participated in the negotiations at arm’s length with the Company and its special committee and did not know of the plaintiff’s complicity in the breach of fiduciary duty.
In addition, creditors often include an unjust enrichment theory in a debt collection lawsuit. The theory is generally brought as a secondary theory of liability. In a debt collection lawsuit, a consumer may be able to assert an unjust enrichment claim if the debtor has provided a benefit to the consumer, and the consumer knew of the benefit and received it. Without payment, the creditor would be unfairly enriching the consumer and not allowing them to pay back the benefit.
Target’s negligence allowed thieves to manufacture counterfeit cards
According to a lawsuit filed last week in federal court in San Francisco, Target failed to implement reasonable security practices and procedures. As a result, the data breach may have permitted the manufacture of fraudulent credit cards. Target has not yet disclosed the nature of the breach, but the data leak has left many customers’ identities at risk. This means that many of the stores affected by this breach will likely face legal action in the future.
During the Black Friday weekend, Target Corp. was hit with a nationwide data breach. The thieves likely accessed card data stored on the magnetic stripe of the cards. This is known as “card skimming.” If the data theft goes unchecked, it could lead to counterfeit cards and the fabrication of credit cards for fraudulent use. Moreover, it may have triggered ATM fraud due to the data leaking to a counterfeit card maker.