First Choice Federal Credit Union v. Target Corp.
On Friday, January 31, 2014, First Choice Federal Credit Union (“First Choice”) of New Castle, Pennsylvania filed a class action complaint in the United States District Court for the Western District of Pennsylvania against Target Corporation.
The lawsuit is brought on behalf of all banks, credit unions and other financial institutions in the United States who suffered damages resulting from the recent security breach that compromised Target store customers’ names, credit and debit card numbers, card expiration dates, personal identification numbers, and card verification values.
The complaint alleges that many financial institutions nationwide, including First Choice, incurred significant costs stemming from the Target data breach. First Choice brings claims on behalf of any financial institutions who, as a result of the data breach, were forced to (a) cancel or reissue access devices affected by the breach; (b) close deposit, transaction, share draft, or other accounts affected by the breach, including but not limited to stopping payments or blocking transactions with respect to the accounts; (c) open or reopen any deposit, transaction, share draft, or other accounts affected by the breach; (d) refund or credit any cardholder to cover the cost of any unauthorized transaction relating to the breach; or (e) notify cardholders affected by the breach.
First Choice further alleges that Target knew or should have known that its payment processes were vulnerable to type 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 data breach for several weeks after it was discovered, resulting in increased damages for First Choice and other financial institutions.
Representatives of financial institutions who believe that their institutions have been adversely impacted by the Target data breach may obtain additional information by contacting Shanon J. Carson at (215) 875-4656 or Alexandra K. Piazza (215) 875-3063.