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Data breach costly for Target


Minneapolis – Target Corp. has released an estimate of costs related to its 2013 data breach.

In a 10-Q filing with the Securities and Exchange Commission (SEC), Target estimated it had incurred $168 million in liabilities and was eligible for $55 million in insurance reimbursements (as of August 1, 2015).

Target is not estimating final damages, but said they could be “significant” depending on court actions, settlements and future insurance reimbursements. One likely additional charge will be a $67 million settlement Target tentatively reached with Visa. Target still has claims processing from three other major card networks, which it expects to dispute and settle through negotiation.

In addition, Target said more than 100 state court lawsuits have been filed, with one stayed. Federal suits have been consolidated into one action filed in Minnesota federal court, which has been tentatively settled for $10 million. A lawsuit in Canada was dismissed but is currently being appealed.

In one good piece of news, the SEC does not expect to recommend any legal action against Target for the breach.

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