$10 million settlement in Target data breach OK'd.

• Author: Karnowski, Steve
• Position: Business

Byline: Steve Karnowski and Michelle Chapman

A Minnesota judge has endorsed a settlement in which Target Corp. will pay $10 million to settle a class-action lawsuit over a massive data breach in 2013.

U.S. District Judge Paul Magnuson granted preliminary approval of the settlement after a hearing Thursday in St. Paul, Minnesota. The move will allow people to begin filing claims ahead of another hearing for final approval, which was scheduled for Nov. 10.

People affected by the breach can file for up to $10,000 with proof of their losses, including unauthorized charges, higher fees or interest rates, and lost time dealing with the problem.

''Target really needs to be commended for being willing to step up,'' Magnuson said.

Target's data breach in 2013 exposed details of as many as 40 million credit and debit card accounts and hurt its holiday sales that year. The company offered free credit monitoring for affected customers and overhauled security systems.

The settlement would also require Minneapolis-based Target to appoint a chief information security officer, keep a written information security program and offer security training to its workers. It would be required to maintain a process to monitor for data security events and respond to such events deemed to present a threat.

''We are pleased to see the process moving forward and look forward to its resolution,'' Target spokeswoman Molly Snyder said in an emailed statement.

Claims will mostly be submitted and processed online through a dedicated website.

Vincent Esades, an attorney for Target customers, said after the hearing that the settlement could end up costing Target $25 million, when attorneys' fees and administrative costs are added in.

He said consumers will likely be able to start filing claims around April 30, and 100 million people may be eligible. Consumers can claim up to $10,000 if they can document unreimbursed...