Kmart Settles Data Breach Class Action with Banks
Kmart Corp. has submitted a motion for preliminary approval to an Illinois federal court of a settlement agreement it has reached with several banks relating to ongoing litigation against the retailer stemming from recent data breaches. The banks had brought a proposed class action against the retailer over the security measures it employed during a 2014 data breach of its network. According to the banks, Kmart was negligent in that its prior security measures were outdated and resulted in damages to the banks. The banks also sought to bring claims against Kmart for consumer fraud. The settlement comes after Kmart previously attempted to have the banks’ claims for consumer fraud dismissed, arguing that the banks were not consumers and thus their claims were meritless.
Details of the settlement are not yet available.