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Target Faces Class Action Lawsuit over Massive Holiday Shopping Data Breach

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Portland Target is facing a class action lawsuit over the recent data breach of up to 40 million customers' credit and debit cards. Filed in the US District Court for the District of Oregon at Portland, by lead plaintiff Lisa Purcell, the lawsuit ( U.S. District Court for the District of Oregon at Portland case number: 3:13-cv-02274) claims that Target was negligent in that it failed to implement and maintain reasonable security procedures and practices appropriate to the nature and scope of the information compromised in the data breach.

Specifically, Purcell alleges that she used her debit card between November 27 and December 15, including on December 9 to buy Christmas-related goods for her family during the holiday season. Accordign to the lawsuit, news of the data breach was initially reported by Brian Krebs, a blogger, on December 18, before Target made any attempt whatsoever to notify affected customers, the lawsuit states.

Purcell claims that as the news broke, Target finally released a statement concerning the data breach, but not one designed to directly notify its affected customers.

"The information Target lost, including Plaintiff' identifying information and other financial information, is extremely valuable to thieves,"the complaint states. "As the Federal Trade Commission recognizes, once identity thieves have personal information, they can drain your bank account, run up your credit cards, open new utility accounts or get medical treatment on your health insurance."

The so-called track data was stolen in real time as payment cards were swiped in its stores between November 27 and December 15, according to a statement issued by Target.

"Investigators believe the data was obtained via software installed on machines that customers use to swipe magnetic strips on their cards when paying for merchandise at Target stores,"the lawsuit states.

Additionally, the lawsuit states that the thieves may have also accessed customers' PIN number in instances where debit cards were used, allowing them to withdraw money from those customers' bank accounts.

Purcell, as the lead plaintiff, seeks to represent all those similarly situated to obtain damages, restitution and injunctive relief for the class. She is being represented by Jennifer Rust Murray of Terrell Marshall Daudt & Willie PLLC.

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Last updated January 14 2014

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