Target sues Chubb in connection with 2013 data breach – Digitalmunition

News Target sues Chubb in connection with 2013 data breach

Published on November 18th, 2019 📆 | 5598 Views ⚑


Target sues Chubb in connection with 2013 data breach

Target Corp. filed suit against Chubb Corp. in federal district court Friday, charging the insurer improperly refused to indemnify it for its $138 million settlement with financial institutions in connection with its December 2013 data breach.

Target contends in this lawsuit that because the banks had to replace plastic payment cards it constitutes “loss of use of tangible property that is not physically injured,”’ under its general liability coverage, according to the lawsuit filed in U.S. District Court in Minneapolis on Friday in Target Corp., a Minnesota corporation, v. ACE American Insurance Co. et. al.

Minneapolis-based Target was the target of a computer breach that exposed the payment card information for some 110 million customers in December 2013.

The ensuing litigation included lawsuits filed by financial institutions that alleged damages resulting from the cost of replacing payment cards that had been potentially compromised as a result of the breach, according to the lawsuit.

In May 2016, Target reached a settlement in a class action lawsuit brought on behalf of a class of issuing banks for about $58 million, according to the lawsuit.

Adding in confidential settlements with major card issuers as well as numerous individual issuing banks led to a total settlement of about $138 million, of which about $118 million was paid to the issuing banks, and the remaining $20 million paid in attorneys fees and class representative payments, according to the lawsuit.

Chubb unit ACE had issued two general lability policies to Target for the policy period Feb. 1, 2013, to Feb. 1, 2014, that provided a total general aggregate limit of $50 million.

It also provided a third layer excess general lability policy with a $25 million limit of liability, according to the lawsuit, with other excess layers provided by units of American International Group Inc. and Axa XL, a division of Axa SA, according to the lawsuit, which are not parties to the suit.

The lawsuit, which charges the insurer with breach of contract, seeks damages, attorneys fees and interest.

Spokesmen for Target and Chubb could not be reached for comment.







Source link

Tagged with:

Leave a Reply

Your email address will not be published. Required fields are marked *