Lawsuits Are Piling Up At Target After Hackers Steal Millions Of Customers' Data

Business Insider

Jim Finkle and Dhanya Skariachan, Reuters
Dec. 24, 2013, 5:07 AM 207

REUTERS/Eric Thayer

The timing couldn't be worse.

BOSTON/NEW YORK (Reuters) - Target Corp's general counsel, Timothy Baer, spoke with top state prosecutors on Monday to address their concerns about a massive data breach, as consumer lawsuits piled up against the retailer and two U.S. senators called for a federal probe. Attorneys general from several states including Connecticut, Massachusetts and New York have asked the company to provide more information about the cyber attack, in which hackers stole data from as many as 40 million credit and debit cards of shoppers who visited Target stores during the first three weeks of the holiday shopping season.
Target did not specify which state officials Baer spoke with to "bring them up to date" on the data breach, the second-largest in U.S. retail history. The No. 3 U.S. retailer said the call took place earlier on Monday but gave few details on the discussion.
The company faces at least 15 lawsuits seeking class action status as a result of the cyber attack. The suits were filed by people who claim their information was stolen and they allege that Target either failed to properly secure the customer data, did not promptly notify customers of the breach or both.
Target spokeswoman Molly Snyder said it was company policy not to comment on litigation.
The Secret Service is leading the government's investigation into the matter. Target has not said how its systems were compromised, except to say the operation was "sophisticated." It has apologized and offered 10 percent discounts over the weekend to bring disgruntled customers back to stores.
With so little information disclosed so far about the attack, it is unclear whether the plaintiffs will be able to prove their allegations.
Meanwhile, two Democratic U.S. Senators, Richard Blumenthal of Connecticut and Chuck Schumer of New York, have asked the U.S. Federal Trade Commission to investigate the breach.

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