Target Corp. agreed to pay $39.4 million to resolve claims by banks and credit unions that said they lost money from the retailer's 2013 data breach.
The preliminary settlement, filed on Wednesday, resolved a class-action claim from lenders seeking to hold Target responsible for their costs to reimburse fraudulent charges and issue new credit and debit cards. And if approved by the U.S. District Court in St. Paul, Minnestota, Target will pay the money to various banks and credit unions.
Target has said at least 40 million credit cards were compromised in the breach, and that as many as 110 million people may have suffered the theft of personal information such as email addresses and phone numbers. The Minneapolis-based retailer has taken steps to avoid a recurrence, including being among the first U.S. retailers to install microchip-enabled card readers at all stores.