Court nixes Target motion to dismiss consumer class-action claim

Roughly a year ago, the databases of major retailer Target were hacked, leaving millions of customers exposed to danger due to the theft of their credit and debit card information. Numerous class action lawsuits were filed against the company, including some in California. Recently, in a U.S. District Court, a judge has ruled that a consolidated consumer class-action claim against Target can go forward.

Target had asked the court to dismiss the action because it claimed that the plaintiff consumers could not show that they suffered any damage or injury. The judge implied that the motion of Target was disingenuous by pointing out that the plaintiffs had indeed been exposed to numerous damages. These included having to turn in credit cards and obtain new ones, sometimes with a fee charged.

Other claims involved blocked or limited access to bank accounts, inability to pay other bills and resulting late payment fees. The damages were incurred when banks froze the accounts of cardholders who were in the databases that were stolen. This was done to see if any unauthorized transactions could be found and for the purpose of issuing new cards to the affected persons.

There were an estimated 110 million Target shoppers who were affected by the massive data theft, one of the largest in U.S. history. The incident affirmed the class action as a vital tool in bringing some justice to those who were negatively impacted. The trial in the case will take place in a federal court in Minnesota, where Target has its headquarters.

Trial is scheduled for 2016, and the class has not yet been certified.  The consumer class-action claim is the consolidated collection of many cases, including some from California, that were filed across the country and combined for trial in the U.S. District Court. The lawsuit alleges that Target breached consumer protection laws and data-breach laws. It also alleges negligence in failing to exercise due care to protect the privacy of its customers.

Source: twincities.com, "Judge allows consumer lawsuits from Target breach", Tom Webb, Dec. 19, 2014