Bank Claims for Target-Type Breaches: Leveraging Litigation Theories, Assessing and Pleading Damages

Recovering Losses Due to Third-Party Data Breaches and Response Planning to Protect Customers' Financial Information

Recording of a 90-minute premium CLE webinar with Q&A

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Conducted on Thursday, May 15, 2014

Recorded event now available

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Course Materials

This CLE course will discuss current developments in bank claims against Target and other companies in connection with their data breaches affecting bank customers. The panel will discuss theories of liability for banks to recover from third parties, and the scope, assessment and pleading for damages. The panel will also outline best practices for banks to develop a business response plan for a potential data breach by a third party that compromises bank customers' financial information.


Data breaches at Target, Neiman Marcus and a number of other nationwide businesses compromised tens of millions of credit and debit card accounts and resulted in losses to banks and financial institution estimated in the hundreds of millions. Banks and individuals impacted are filing suits and class actions against the third-party businesses to recoup damages caused by the breach.

Data breach claims aren't new but are escalating and getting more attention from the courts and the public. Prior data breaches pitting banks against third-party businesses over data breaches include credit card processor Heartland Payment Systems after it fell victim to a breach some years ago. The Fifth Circuit recently reinstated the bank's claims against the card processor.

An effective response plan would include heightened fraud monitoring of customer accounts and determining whether and how quickly to reissue debit and credit cards that are or could be at risk.

Listen as our authoritative panel of attorneys analyzes the current litigation by banks against Target to recover losses they incurred in the wake of the retailer's data breach, theories of liability and scope of damages in bank claims against third parties, and prudent actions banks should take to protect their customers’ financial information in the wake of a third-party breach.



  1. Proactive response issues for banks faced with breaches by third parties
  2. Theories of liability for banks to recover against victims of data breach
  3. Liability of third-party data security vendors
  4. Scope of damages
  5. Current developments in bank claims against Target and developments in Heartland Payment Systems


The panel will review these and other key questions:

  • What legal obligations do banks have to safeguard customers whose cards have been breached?
  • What are best practices for banks in responding to third-party breaches to protect their customers?
  • What are the theories of liability for banks to recover against victims of data breaches that compromise bank customer financial information?
  • What are the current developments in bank litigation against Target and other businesses suffering data breaches?


Robert W. Gifford
Robert W. Gifford

Kane Russell Coleman & Logan

Mr. Gifford practices in the firm’s Complex Litigation Section. He trained in the trial and appellate bureaus of...  |  Read More

Kenneth C. Johnston
Kenneth C. Johnston

Kane Russell Coleman & Logan

Mr. Johnston practices in the Financial Services, Litigation, Insolvency & Creditor Rights Practice Groups...  |  Read More

R. Andrew Patty, II
R. Andrew Patty, II

McGlinchey Stafford

Prior to joining the firm, Mr. Patty was a bank director and vice-chairman of a federally chartered financial...  |  Read More

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