Two banks have teamed up to file a class action lawsuit against Target over its data breach.
The Provost Umphrey Law Firm is representing the Community Bank of Texas and First National Bank of Texas. Other banks could also join the suit.
The banks claim that the breach, in which hackers obtained debit and credit card information from approximately 40 million Target customers, could have been prevented. The law firm states that Target failed to implement and maintain reasonable, industry-standard security measures to protect its customers credit card, debit card, and personal information.
Banks, according to the lawsuit, have covered the expenses for reimbursing customers for fraudulent charges, creating, issuing and mailing new payment cards to their customers, as well as other major costs related to the security breach.
We feel that CommunityBank is well positioned to represent a nationwide class of banks, credit unions, and other financial institutions. It is too early to determine just how much money banks have lost, but early indications are that losses could run in the hundreds of millions of dollars, said Michael A Havard.