Target reaches deal with Visa over 2013 data breach
Target Corp. has reached a settlement with Visa over a massive data breach in 2013 that compromised the private data of millions of shoppers.
The big-box retailer will pay up to $67 million to Visa and its card issuers, according to a person with knowledge of the deal who wasn’t authorized to speak publicly.
This deal comes a few months after a $19-million settlement with MasterCard Inc. to settle lawsuits resulting from the breach fell apart due to insufficient support from banks and credit unions.
“Target is pleased that we have reached a settlement agreement with Visa related to the data breach,” the company said in a Tuesday statement.
The news pushed Target’s stock as high as $80.73 a share on Tuesday, a 2% increase from Monday’s close.
Tens of millions of Target customers were affected by a major hacking during the 2013 holiday season -- the most crucial time for the retail industry. The company said cyberthieves made off with credit card and debit card information.
In the aftermath, Target’s longtime chief executive, Gregg Steinhafel, resigned, as did other high-ranking executives.
Sales and profit fell as the retailer hustled to assure shoppers that the security holes were plugged.
Last year, Target said costs related to the breach had hit $148 million. In addition, the company is spending $100 million to better secure its systems, including reissuing cards with a chip technology that is more difficult to hack.
Target is scheduled to release its second-quarter results Wednesday.
Follow Shan Li on Twitter @ByShanLi
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