U.S. Eighth Circuit - The FindLaw 8th Circuit Court of Appeals Opinion Summaries Blog

February 2017 Archives

Target's Data Breach Settlement Blocked by Appeals Court

A federal appeals court has delayed a $10 million settlement for customers whose records were hacked at Target, sending the case back to a judge to consider a separate group of customers who were not affected by the breach.

The U.S. Eighth Circuit Court of Appeals said the trial judge did not adequately consider whether the settlement fairly represents customers who may have problems from the breach in the future. They want out of the class action settlement, and want to proceed as a sub-class.

"We hold that the district court abused its discretion by failing to rigorously analyze the propriety of certification, especially once new arguments challenging the adequacy of representation were raised after preliminary certification," the panel said.