MONTGOMERY, Ala. (1/3/14)--Alabama State Employees CU has filed a class-action suit related to costs associated with the Target data breach.
It is estimated that more than 40 million accounts were compromised in the breach, which occurred on or around Nov. 27, just before Black Friday, and continued through at least Dec. 15.
The suit, filed Monday in an Alabama federal court, seeks $5 million in damages for losses suffered by millions of financial institution members and customers whose personal financial information was compromised, as well as costs associated with closing accounts, reissuing new checks, debit cards and credit cards as a result of Target's data breach.
On Dec. 20, Target announced that it had been hit by the wide-reaching security breach.
The complaint alleges that Alabama State Employees CU, Montgomery, Ala., and other plaintiffs "were required to expend time, energy and expense to address and resolve these financial disruptions and mitigate the consequences by refunding loss deposits; issuing new credit and debit cards; closing compromised or suspected-to-be compromised accounts opening new accounts; and increased costs in monitoring customer and member accounts to determine which transactions are legitimate or fraudulent."
The $211 million-asset credit union is represented by the law firm of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. of Montgomery, Ala.
The law firm filed the class-action lawsuit Dec. 30 in the U.S. District Court, Middle District of Alabama, Northern Division.