The breach, which took place at the peak of the holiday season, jeopardized over 40 million credit cards. It went unnoticed for weeks including one of the busiest shopping day of the year, Black Friday.
Target is notoriously known for being one of the biggest point of sale attacks from a string of breaches that took place between 2013 and 2014.
Saint Paul, Minnesota U.S District Judge, Paul Magnuson, allowed respective banks to pursue claims collectively.
Banks seek to obtain compensation for fraudulent charges and credit/debit cards that required replacement after the attack.
By endorsing the class-action suit prosecutors received leeway for negotiations, which will likely result in a large settlement.
A head lawyer on the case, Charles Zimmerman, stated, ” This important ruling brings financial institutions one step closer to collectively holding Target accountable for its unprecedented data breach.”
Target is “disappointed” in the ruling but will begin considering actions to take after examining the ruling.
This comes just weeks after the chain of retail stores agreed to pay a settlement of up to $67 million to Visa card issuers. The deal was settled directly with Visa. Banks who sought restitution through the Visa deal will not be able to participate in this suit.
In May, a deal with MasterCard Inc for $19 million fell through since not enough banks accepted the arrangement.
Target has yet to make settlements with three other major payment networks who filed complaints.
In march the retailer agreed to pay $10 Million and up to $10,000 per customer after a class-action suit had been filed by consumers.
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