ST. PAUL, Minn.—An emergency hearing will be held today over an announced settlement in the Target data breach.
Documents have been filed in federal court here challenging the $19-million settlement announced by Target and MasterCard International related to the 2013 data breach at the retailer. Attorneys representing banks, credit unions and other issuers are critical of the deal, saying it does not come close to covering the actual losses suffered by the financial services providers.
Karl Cambronne of the Minneapolis-based Chestnut Cambronne law firm was quoted by Twin Cities Business as saying, “Essentially Target is trying to end run the court here. They’re telling the world that $19 million is going to fix everything. It’s just a number pulled out of the air that has no basis in reality.”
Twin Cities Business reported that Cambronne said that information uncovered during the discovery process indicates that MasterCard damages alone exceed $100 million, and that he anticipates damages related to Visa cards will be even higher. Visa and Target are engaged in separate talks over the breach.
An emergency hearing is taking place in St. Petersburg today because U.S. District Judge Paul Magnuson is there helping to lessen a backlog of cases in that court. Attorneys from a number of firms are seeking class action status in the Target case.