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Local bank sues Target for security breach expenses
BEAUMONT- Jennifer Gordy
A local bank is responding to the recent security breach involving millions of Target customers with a class action lawsuit.
CommunityBank of Texas is teaming up with another bank hoping to be the national representative for
other financial institutions that claim losses in the breach.
CommunityBank of Texas last week filed a class action lawsuit in Federal Court in Minnesota where the headquarters for Target Corporation are located
The lawsuit claims banks and savings and loans may have lost hundreds of millions of dollars.
Attorney Michael Havard says Community Bank is among the financial institutions affected when hackers got access to the credit, debit and personal information of target customers.
Community Bank is a 2.5 million dollar local bank. It has 35 branches and it like many other banks has
suffered direct losses as a result of the target security breach.
"Ultimately we are seeking damages from target corporation to reimburse the bank for it's losses.
The banks losses include paying the customers for the fraudulent charges as well as reissuing millions
Upon millions of debit and credit cards, said Havard
Bank board chairman pat parsons said they're trying to figure out how much the bank lost.
"We are still in the middle of tabulating this. Its not just the piece of plastic. There is a tremendous amount of time and effort and lost sales and opportunity cost that went into something like this and literally at this bank in Beaumont, Texas we had thousands of cards that had to be
replaced, said Parsons.
In the end, Target and the banks agree, customers' aren't responsible for the breach, or for covering the losses, that amount to millions of dollars.