A Boston lawyer, whose suit against Target Corp. over its staggering 2013 data breach was consolidated into a national class- action complaint, endorsed a $10 million settlement that yesterday won preliminary approval.
Preston W. Leonard said the settlement in federal court in Minnesota is a "good result for consumers."
"This case and others like it hopefully will encourage retailers to do more to safeguard consumer data when they check out," Leonard said. "I was encouraged that under the settlement, Target will appoint a chief information security officer. That is a responsible approach to handling data in this climate."
U.S. District Judge Paul Magnuson scheduled a Nov. 10 hearing for final approval of the settlement.
Leonard and numerous other lawyers across the country filed class-action complaints after about 40 million Target customers' credit and debit card accounts were compromised by hackers between Nov. 27 and Dec. 15, 2013 — the height of the holiday shopping season.
"The criminal element out there is growing, it's sophisticated, and it's hard to stay ahead of," said Massachusetts Attorney General Maura Healey, whose office is continuing its multi-state investigation into the Target breach.
Under the class-action settlement, affected consumers can file for up to $10,000 with proof of their losses, including unauthorized charges, higher fees or interest rates, and lost time dealing with the problem.
John Chapman, undersecretary of the state Office of Consumer Affairs and Business Regulation, said its website, www.mass.gov consumer, will walk people through the process once the settlement is final.
The settlement would also require Minneapolis-based Target to keep a written information security program, offer security training to its workers, maintain a process to monitor for data security events and respond to such events deemed to present a threat.
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