Banks pull out of lawsuit vs Target, Trustwave over data breach

Tue Apr 1, 2014 9:46pm IST

A view of the sign outside the Target store in Westminster, Colorado, February 26, 2014. REUTERS/Rick Wilking/Files

A view of the sign outside the Target store in Westminster, Colorado, February 26, 2014.

Credit: Reuters/Rick Wilking/Files

Related Topics

Stocks

   

REUTERS - Two U.S. banks that sued Target Corp (TGT.N) and credit card security firm Trustwave Holdings Inc over responsibility for one of the largest data breaches on record have at least for now dropped their lawsuit.

Trustmark National Bank, which is based in New York, and Houston-based Green Bank NA said they would dismiss their cases "without prejudice to re-filing," according to filings on Friday and Monday in the federal court in Chicago.

The banks had accused Target and Trustwave of failing to properly secure customer data, leading to the theft of about 40 million payment card records and 70 million other records during last year's holiday shopping season.

But on Saturday, Trustwave Chief Executive Robert McCullen told clients saying that Target did not outsource data security to his Chicago-based company, and that Trustwave did not monitor Target's network or process its cardholder data.

Agreements with information technology services companies are often kept confidential, and neither Target nor Trustwave would confirm whether the companies have been partners.

Panagiotis Albanis, a lawyer for Trustmark and Green Bank, did not immediately respond on Tuesday to requests for comment.

Trustmark and Green Bank had accused Trustwave of having failed to bring Target's computer systems up to industry standards, and as late as September 20 finding "no vulnerabilities."

The lawsuit said the breach cost banks money from having to correct fraudulent charges and reissue cards, and that the industry could end up owing more than $1 billion.

The case is Trustmark National Bank et al v. Target Corp et al, U.S. District Court, Northern District of Illinois, No. 14-02069.

(Reporting by Jonathan Stempel in New York; editing by Andrew Hay)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Obama Arrives

Obama Arrives

Bear hug with Modi gets Obama's India trip off to warm start.  Full Article | Pictures 

Japanese Hostages

Japanese Hostages

Japan condemns apparent IS execution, demands hostage release.  Full Article 

Ukraine Crisis

Ukraine Crisis

Pro-Russian rebels attack key port; Ukraine says at least 30 dead.  Full Article 

Australian Open

Australian Open

Nadal, Sharapova charge into quarters as top brass shine.  Full Article 

Row over Film

Row over Film

Group says 'American Sniper' film spurs threats against Muslims.  Full Article 

Movie Review

Movie Review

Dolly ki Doli is a breezy watch, writes Shilpa Jamkhandikar.  Full Article | Related Story 

Akshay Kumar's Latest

Akshay Kumar's Latest

"Baby" is a smartly written, well-acted film  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage