Expensive privacy settlements for Linkedin and Target

Linkedin has agreed to pay US$1.25 million and to implement industry-standard data security protocols to settle a user privacy class action suit. In 2012, Linkedin was hacked and the passwords for nearly 6.5 million users were stolen. Each claimant is likely to receive up to $50 from the $1.25 million settlement fund.

Meanwhile Target has agreed to US$10 million to settle its 2013 data breach, which exposed the credit card and personal information of up to 110 million customers. Affected customers will be eligible to receive damages of up to $10,000 each and can claim for time spent dealing with the consequences of the breach, although recovery is limited to $10 an hour for up to two hours. Target will also implement measures to better safeguard consumer data. In the 2014 financial year, Target’s gross expenses arising from the breach topped US$191 million.

Source: Bloomberg and Reuters