The funds will be used to repay some of the money that Target’s paid to financial institutions after the data breach 2013. After a large-scale data breach in 2013, Target has paid the bank $138 million. Of these, $74 million did not receive payment from the company’s insurers, and now, Target refused to court the insurer to pay the indemnity.
The lawsuit was filed last week and the respondent is now ACE American Insurance Co. under the Chubb Insurance Group. Target said that he had negotiated with ACE for more than a year, but did not reach any resolution on the ACE’s refusal to recognize.
Target has previously reimbursed the bank for the cancellation of financial institutions and the reissue of physical payment cards. Target said that the total cost of data breaches was about $292 million, of which $90 million was reimbursed by insurance.