Target Faces New CU Suit
A second credit union has filed a legal complaint against Target over losses it said it sustained as a result of the firm's card data breach late last year.
The $38 million First Choice Federal Credit Union, headquartered in New Castle, Pa., filed its complaint in the U.S. District Court for the Western District of Pennsylvania on Jan. 31.
The $211 million Alabama State Employees Credit Union filed a similar legal complaint in early January. Both are class action suits.
Because of the later filing, the First Choice complaint included Target's Jan. 10 announcement of additional records stolen, as well as reports of stolen credit and debit card numbers being sold on criminal websites in other counties.
“As a direct and proximate result of the Target Data Breach, Plaintiff and members of the Class have been damaged, because Target’s wrongful conduct has caused Class members to incur significant losses associated with credit and debit card cancellation and/or reissuance;” First Choice wrote in its complaint. The suit seeks damages that include “customer reimbursement for fraud losses; lost interest and transaction fees; lost customers; administrative expenses associated with monitoring and preventing fraud and administrative expenses in dealing with customer confusion; and claims alleging fraudulent activity.”
The Pittsburgh law firms of Carlson Lynch, Del Sole Cavanaugh Stroyd, and Berger & Montague filed the complaint for the credit union and issued a statement.
“The complaint alleges that Target knew or should have known that its payment processes were vulnerable to this sort of attack, yet the company failed to take adequate measures to protect sensitive data and did not inform customers or financial institutions about the ongoing attack for several weeks after it was discovered,” the court documents said. “We believe Target is liable under Minnesota state law (where Target’s headquarters are located) for these damages, and the purpose of the suit is to recover some of these losses for the plaintiffs.”