Emily Westridge Black in Law360: Target's $39M Breach Deal Boosts Banks' Recovery Prospects

December 03, 2015

The $39 million settlement between Target and a class of card issuers to resolve their data breach dispute is an example to financial institutions that they don't need to shoulder all of the liability for retail hacks and can recoup significant sums for their losses — especially if they resist offers from the major card brands, attorneys say.

Under the deal that received preliminary approval from U.S. District Judge Paul A. Magnuson on Wednesday, U.S. financial institutions that issued the roughly 40 million payment cards compromised by the 2013 security breach at Target and have not released their claims in other deals stand to receive funds from a $20.25 million fund that the retailer will set up to compensate class members directly, on top of additional funds they are eligible to recoup from network recovery programs run by Visa Inc. and MasterCard Inc...

"This was the rare case where the class of financial institutions was certified, and just like with any class action, once it's certified, there's a big incentive on both sides to settle the case," Haynes and Boone LLP attorney Emily Westridge Black said.

Excerpted from Law360. To read the full article, click here (subscription required).

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