Target Had Duty to Protect Data: Judge

Missy Baxter reports:

In a much-anticipated court ruling, a Minnesota federal judge said Tuesday that Target Corp. had a duty to protect debit and credit card information from cyberthieves.

U.S. District Judge Paul Magnuson rejected Target’s attempt to dismiss claims filed by a group of financial institutions seeking damages related to the retailer’s data breach in late 2013, court documents said.

The judge ruled that the plaintiffs, which include the $282 million CSE Federal Credit Union of Lake Charles, La., have a plausible case for negligence because Target played a key role in allowing cyberthieves to hack into computer systems and obtain card data and possibly personal information of card holders, the documents said.

Magnuson agreed to allow three of four claims made by plaintiffs to move forward, but dismissed one count that claimed negligent misrepresentation by omission, which was related to Target’s security system, the documents said.

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