Target has proposed to pay $10 million to settle a class-action lawsuit over its massive 2013 data breach, according to court documents filed in the U.S. District Court in Minnesota on last week.
The settlement offer comes from a class-action lawsuit following a massive 2013 data breach. However, the offer comes with some big caveats that will likely mean much less money for victims who had their information stolen from company servers.
The breach may have affected customers nationally – including at stores in Stockton and Tracy.
The settlement still must be approved by a federal judge.
Under the proposed settlement, Target customers would have to prove and document they were damaged. Victims can be reimbursed for unauthorized credit card charges, bank fees or costs related to replacement IDs, but only if they are documented.
In reality banks typically reimburse customers 100 percent in fraud cases. It’s more likely that customers would get reimbursed for “lost time” in dealing with the issues that came from the fraud. However, a victim’s time is only valued at $10 per hour and there is a limit of two hours for each case of dealing with loss.
If all 40 million people joined the settlement and funds were distributed evenly, each person could get as little as 25 cents.
Under the settlement, the company is supposed to improve security and employee training.