Two weeks ago our firm, Steckler LLP, along with lawyers from Kane Russell Coleman and Logan PC of Dallas, Texas filed suit on behalf of Green Bank and Trustmark Bank against Target and its putative IT outsource, Trustwave. The gravamen of this suit is that Target’s security breach during the Christmas holidays caused damage to the banks by forcing them to take their own security measures to protect their customers (namely, depositors who have check cards or credit cards that they used at Target during the period in question).
To give some insight, Banks have both a self-interest as well as a duty to their customers to make sure that their customers’ financial information is not stolen or compromised and therefore subject to fraudulent financial activity. The costs of remedying this one infringement has been estimated to be over $200 million for all banks. Those costs include security monitoring, issuing and sending out replacement cards, customer service spikes, and the like — to say nothing of the potential fraudulent charges.
On Friday, March 28th, 2014, Trustmark exited the lawsuit which is styled as a class action and may decide to replead at a later time.