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Target To Pay $10 Million In Proposed Settlement For 2013 Data Breach

Posted by samzenpus on from the pay-up dept.

itwbennett writes Target has agreed to pay $10 million in a proposed settlement to a class-action lawsuit stemming from its massive 2013 data breach, which affected as many as 110 million people. Individual victims could receive up to $10,000. The proposed settlement also includes measures to better protect the customer data that Target collects, according to documents filed with the U.S. District Court, District of Minnesota.

16 of 54 comments (clear)

  1. Pocket change by Guspaz · · Score: 4, Insightful

    They're simultaneously trying to scam Canadian suppliers out of $1.5 billion in unpaid bills. They declared bankruptcy, and now they're trying to claim that they are their own biggest creditor, so all the money from their liquidation should basically go to themselves. All the while, the parent company is making billions in profit.

  2. Actual sums received by members of the suit by Anonymous Coward · · Score: 5, Informative

    CNN Money goes to more detail on how the money will be distributed.
    http://money.cnn.com/2015/03/19/technology/security/target-data-hack-settlement/
    (tldr -- lawyers are the winners)

    1. Re:Actual sums received by members of the suit by Marginal+Coward · · Score: 3, Insightful

      I think the lawyers are always the winners in these class action lawsuits. Years ago, I received a notice that I was the beneficiary of a class action lawsuit revolving around an airline ticket I had once purchased. It seemed like a gift to me because I didn't even know that I had been "damaged." So, the lawyers who brought the suit seemed to be doing me a favor.

      As part of the settlement, I was to receive a coupon for a discount on a future ticket from the same airline. The coupon didn't have much face value, maybe $20. Even worse, there were a lot of restrictions on it. So, it was basically worthless.

      The lawyers got paid in cash. I assume the lawyers and the defendant always structure these things to minimize the real cost to the defendant in return for maximizing the payout to the lawyers. And of course, compensating the "damaged" plaintiff doesn't really enter into it.

    2. Re:Actual sums received by members of the suit by Marginal+Coward · · Score: 2

      Class action suits are not designed to provide compensation to the current class.

      OK, IANAL, so help me out here. If that's the case, why do plaintiffs get anything at all? Why not just give all the compensation to the lawyers and let those naive plaintiffs go make themselves whole? Why in the heck should the legal system care about people who were damaged in the first place?

      Actually, to me, it looks much more like a situation of the foxes being in charge of the hen house. That would neatly explain why the hens never always receive chicken feed as compensation. (My apologies if you happen to be a fox by trade.)

    3. Re:Actual sums received by members of the suit by tlhIngan · · Score: 2

      OK, IANAL, so help me out here. If that's the case, why do plaintiffs get anything at all? Why not just give all the compensation to the lawyers and let those naive plaintiffs go make themselves whole? Why in the heck should the legal system care about people who were damaged in the first place?

      Well, it's because the purpose of the courts is to try to make yourself whole. Except in the case of a class action, where it's practically impossible.

      You see, a class action lawsuit is designed for instances where the defendant causes damage as a whole, but individually, not so much. Let's say your cellphone carrier overbills you $1 a month. On contract. Over two years, that's an extra $24. Will you go take them to court over it? Even small claims will have a larger filing fee.

      Now, let's say the same cell carrier has only 10M customers. Doing this "overbilling" nets them an extra $10M a month, or $120M a year. Really, a decent chunk of money.

      Now, some customers will complain, but if you do it every month, you'll wear them down (you can put them on hold for 30 minutes and most people will forget about the $1).

      individually, no customer is hurt big, but as a whole, damage was caused. And hell, because it's so profitable, others want in as well - imagine your insurance provider doing the same, your TV provider, your internet provider, etc. etc. etc. All skimming an extra few bucks a month.

      And you can get away with a lot before people start to find it's worth it to file a lawsuit.

      Now, what kind of compensation do you want? I mean everyone was hurt only a little bit, so the actual "make whole" part is pretty small.

      And you're perfectly free to opt out of the class action and bring forth your own suit to be made whole again. Just it's likely to cost you more time and money than it's worth.

      What you propose already happens today - you're free to opt out (and you have until they start distributing the awards to do so, so if you think what they give Is lame, you're free to pursue your own lawsuit).

    4. Re:Actual sums received by members of the suit by Marginal+Coward · · Score: 2

      Well, it's because the purpose of the courts is to try to make yourself whole. Except in the case of a class action, where it's practically impossible.

      FWIW, ever since I received that airline coupon, I have thought it would be nice if there was a law that stated that the lawyers and plaintiffs must receive compensation in the same form: if the lawyers get cash, the plaintiffs should get cash, and if the plaintiffs get coupons, the lawyers should get coupons.

      If I had received just one dollar and the lawyers had received thousands of dollars, or, if I had received one coupon and the lawyers had received thousands of coupons, I wouldn't have felt cheated.

  3. There is this internet searching website and by Anonymous Coward · · Score: 4, Informative

    it called Google :

    http://www.theglobeandmail.com/report-on-business/target-lands-16-billion-tax-break-as-creditors-fight-for-payback/article23528282/

    They even have a button for when you feel lucky!

  4. Re:That's less than ten cents per victim! by Anonymous Coward · · Score: 2, Informative

    The math doesn't work out. I guess that judge is a Republican since their kind can't do math.

    Lol 'since their' i think you mean 'sense there'. Whom is the stupid one?

    You are.

    Captcha: educates

  5. Re:Everybody gets a dime. by Time_Ngler · · Score: 2

    $10,000,000 settlement / 100,000,000 plaintiffs = $0.10 per plaintiff.

    What, you think the lawyers working on this class action don't deserve to get paid?!?!?!?

  6. Pennies on the dollar by hilather · · Score: 4, Interesting

    40 million customer credit cards exposed, 70 million customer records containing PII exposed. 10 million dollar settlement over a year later? This is a joke, and a good reason to not bother with security.

  7. $10,000,000 vs Q4 profit of $520,000,000 by DaveyJJ · · Score: 2

    Chump change. Just the cost of doing (sloppy) business these days.

    --
    DaveyJJ
  8. you heard it here first folks by nimbius · · Score: 2

    for those of you negatively impacted by the data breech, for those who had to reissue credit cards and dispute tax returns and refute car loans and social security applications, get ready for a $5 target giftcard to salve those wounds.

    --
    Good people go to bed earlier.
  9. Re: Everybody gets a dime. by bill_mcgonigle · · Score: 3, Insightful

    The irony there is that it's these same member banks that have been avoiding a crypto upgrade for over 20 years, forcing Target to manage valuable strings of numbers.

    Let's play "who's more wildly negligent here?" It'll be a tough call.

    Meanwhile Iceland had marketable torts 1000 years ago and Americans still allow themselves to be screwed over by the class action system.

    --
    My God, it's Full of Source!
    OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
  10. Victims wont receive squat... by Lumpy · · Score: 2

    the lawyers will make out like bandits, but the victims will most likely get a 10% off coupon.

    --
    Do not look at laser with remaining good eye.
  11. Re:Everybody gets a dime. by TheRaven64 · · Score: 5, Interesting

    When a class action suit is settled, if you are a member of the class then you should receive a letter asking if you want to opt in to the class. If not, then you don't get the money and are free to take it to court yourself. Opting out then turning up in a small claims court with a class action result and evidence of the value of your losses should get you a few hundred dollars fairly easily. If enough people do this, then it will discourage companies from offering too low settlements for class action suits. The cost for them to send someone to defend is sufficiently high that it's probably not worth it and small claims courts have a habit of ruling against people who don't turn up...

    --
    I am TheRaven on Soylent News
  12. Unpaid bills, and a tax break by phorm · · Score: 2

    What gets me is that they're declaring bankruptcy in Canada as a separate entity (meaning the parent corp isn't liable) whilst the parent corp in the USA is simultaneously declaring a loss for tax purposes as losses from that same bankruptcy. So really, both Canadians *AND* Americans are getting f***'ed here.