By George Stahl
Target Corp. has agreed to pay $10 million to settle a
class-action suit related to the company's data breach in 2013,
according to court documents filed Wednesday.
The proposed settlement--negotiated with attorneys representing
shoppers whose personal information was compromised in the
breach--was filed to the U.S. District Court in Minnesota for
approval.
Target's data breach in late 2013 compromised 40 million credit-
and debit-card accounts and was one of the challenges that forced
out former chief executive Gregg Steinhafel last May. In July,
Target named PepsiCo. Inc. executive Brian Cornell as its new chief
executive.
Under the settlement, Target would deposit the $10 million into
an interest-bearing account, and the money would be used to pay the
class members' claims as well as any awards approved by the
court.
Members who submit the proper documentation are eligible for
reimbursement of up to $10,000. Claims will be submitted and
processed primarily through a dedicated website.
Target also agreed in the settlement to implement security
measures aimed at better protecting customer data. Those include
designating a chief information security officer, developing
metrics that will measure and maintain its information security
program, and providing training to employees.
In February, Target named Mike McNamara chief information
officer, replacing Bob DeRodes, who had joined the retailer in May
to guide the company after the data breach.
Write to George Stahl at george.stahl@wsj.com
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