Target settles class-action suit over data breach claims for $39 million

Target Corp. will pay most of the costs that banks and other credit card issuers incurred because of the retailer’s 2013 data breach.

The Minneapolis retailer agreed to settle a class-action lawsuit brought by financial institutions for $39 million. This is the last major litigation tied to the breach in which cyberthieves gained access to personal data of 40 million Target customers.

U.S. District Court Judge Paul Magnuson gave preliminary approval to the settlement Wednesday afternoon. The participants in the suit have three months to raise objections to terms before it is finally ordered.

The suit may set a precedent as the first time a U.S. retailer has absorbed most of the costs incurred by financial firms in a data breach. Home Depot and several other retailers are locked in similar litigation after hackers gained access to their systems.