In a letter to customers and business partners, Trustwave Chief
Executive Robert McCullen said the company's connection to Target
was not what had been portrayed in a suit filed last Monday by two
banks seeking at least $5 million in damages.
"Contrary to the misstated allegations in the plaintiffs'
complaints, Target did not outsource its data security or IT
obligations to Trustwave. Trustwave did not monitor Target's
network, nor did Trustwave process cardholder data for Target," said
the letter from McCullen posted on the company's website.
"These claims against Trustwave are without merit," the letter
The lawsuit filed in Chicago federal court by Trustmark National
Bank and Green Bank NA accuses Target and Trustwave of failing to
properly secure customer data, enabling the theft of about 40
million payment card records plus 70 million other records,
including addresses and phone numbers.
The banks said they lost money from alerting customers to the
breach, reimbursing fraudulent charges and reissuing cards. Those
losses could increase, they said, if criminals ultimately use
several million stolen cards as some analysts project.
While the complaint seeks unspecified damages of at least $5
million, New York-based Trustmark and Houston-based Green Bank said
losses could top $1 billion for card issuers they hope to represent
in a class action, and $18 billion for banks and retailers combined.
[to top of second column]
Target, the no. 3 U.S. retailer, already faces dozen of lawsuits
over the breach, but the lawsuit filed on Monday appears to be the
first to focus on Trustwave, a privately held Chicago-based provider
of credit-card security services.
The data breach occurred from November 27, the big post-Thanksgiving
shopping day known as Black Friday, to about December 15.
The case is Trustmark National Bank et al v. Target Corp et al, U.S.
District Court, Northern District of Illinois, No. 14-02069.
(Reporting by Jonathan Stempel in New York, and Jim Finkle in
Boston; writing by Carey Gillam in Kansas City; editing by Peter
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