Target Loses Fight With Chubb Over Data Breach Coverage

A Minnesota federal judge sided with an insurer in a dispute with Target Corp related to settlements over its 2013 data breach, finding the retail company didn’t meet the burden for showing coverage under its insurance policies.

U.S. District Judge Wilhelmina Wright in St. Paul on Monday denied Target’s bid for partial summary judgment, which sought a declaration that the policies issued by ACE American Insurance Co and ACE Property and Casualty Insurance Co cover Target’s settlement payments related to banks’ claims over costs of replacing payment cards after the breach.

The judge granted ACE’s cross-motion for summary judgment, holding that the insurance company doesn’t have a duty to indemnify Target under the policies. The companies are part of The Chubb Corp.

Target, represented by Covington & Burling and Taft Stettinius & Hollister, didn’t immediately respond to a request for comment. A Chubb representative said the company doesn’t comment on legal matters as a matter of policy.

In 2013, Minneapolis-based Target found that a hacker had put malicious software on its computer network, allowing the hacker to steal payment card and personal contact information, according to Target’s 2019 complaint against ACE.

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