Target Settles Security Breach

Target is reportedly close to paying out $10m to settle a class-action case that was filed after it was hacked and stripped of tens of millions of peoples’ details.

Target was smacked by hackers in 2013 in a massive cyber-thwack on its stores and servers that put some 70 million people’s personal information in harm’s way.

The hack has had massive repercussions. People are losing faith in industry and its ability to store their personal data, and the Target incident is a very good example of why people are right to worry.

As well as tarnishing Target’s reputation, the attack also led to a $162m gap in its financial spreadsheets.

The firm apologized to its punters when it revealed the hack, and chairman, CEO and president Gregg Steinhafel said he was sorry that they have had to “endure” such a thing

Now, according to reports, Target is willing to fork out another $10m to put things right, offering the money as a proposed settlement in one of several class-action lawsuits the company is facing. If accepted, the settlement could see affected parties awarded some $10,000 for their troubles.

We have asked Target to either confirm or comment on this, and are waiting for a response. For now we have an official statement at Reuters to turn to. There we see Target spokeswoman Molly Snyder confirming that something is happening but not mentioning the 10 and six zeroes.

“We are pleased to see the process moving forward and look forward to its resolution,” she said.

Not available to comment, not that we asked, will be the firm’s CIO at the time of the hack. Thirty-year Target veteran Beth Jacob left her role in the aftermath of the attack, and a replacement was immediately sought.

“To ensure that Target is well positioned following the data breach we suffered last year, we are undertaking an overhaul of our information security and compliance structure and practices at Target,” said Steinhafel then.

“As a first step in this effort, Target will be conducting an external search for an interim CIO who can help guide Target through this transformation.”

“Transformational change” pro Bob DeRodes took on the role in May last year and immediately began saying the right things.

“I look forward to helping shape information technology and data security at Target in the days and months ahead,” he said.

“It is clear to me that Target is an organization that is committed to doing whatever it takes to do right by their guests.”

We would ask Steinhafel for his verdict on DeRodes so far and the $10m settlement, but would you believe it, he’s not at Target anymore either having left in the summer last year with a reported $61m golden parachute.

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IBM Sued Over Disaster

IBM has been hit with a multimillion-dollar lawsuit by chemical products manufacturer Avantor Performance Materials, which alleges that IBM lied about the suitability of an SAP-based software package it sells in order to win Avantor’s business.

In 2010, Avantor decided to upgrade its ERP (enterprise resource planning) platform to SAP software, according to the lawsuit, filed Thursday in U.S. District Court for the District of New Jersey.

“Seizing upon Avantor’s decision — and fully aware that, given the competitive pressures of Avantor’s industry, and the specialized demands of its customers, Avantor could not tolerate any disruptions in customer service — IBM represented that IBM’s ‘Express Life Sciences Solution’ … was uniquely suited to Avantor’s business,” the lawsuit states. “The Express Solution is a proprietary IBM pre-packaged software solution that runs on an SAP platform.”

But Avantor discovered a different truth after signing on with IBM, finding that Express Life was “woefully unsuited” to its business and the implementation brought its operations to “a near standstill,” according to the suit.

IBM also violated its contract by staffing the project with “incompetent and reckless consultants” who made “numerous design, configuration and programming errors,” it states.

In addition, IBM “intentionally or recklessly failed” to tell Avantor about risks to the project and hurried towards a go-live date, the suit alleges.

“To conceal the System’s defects and functional gaps, IBM ignored the results of its own pre-go-live tests, conducted inadequate and truncated testing and instead recommended that Avantor proceed with the go-live as scheduled — even though Avantor had repeatedly emphasized to IBM that meeting a projected go-live date was far less important than having a fully functional System that would not disrupt Avantor’s ability to service its customers,” the suit states.

The resulting go-live, which occurred in May, “was a disaster,” with the system failing to process orders properly, losing some orders altogether, failing to generate need paperwork for U.S. Customs officials and directing “that dangerous chemicals be stored in inappropriate locations,” the suit states.

Avantor has suffered tens of millions of dollars in monetary damages, as well as taken a hit to its reputation among partners and customers, the suit states.

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Microsoft Seizes Botnet Servers

Microsoft Corp scored a win in efforts to fight online banking fraud, saying it had seized several servers used to steal login names and passwords, disrupting some of the world’s most sophisticated cybercrime rings.

The software giant said on Monday that its cybercrime investigation group also took legal and technical actions to fight notorious criminals who infect computers with a prevalent malicious software known as Zeus.

By recruiting computers into networks called botnets, Zeus logs the online activity of infected machines, providing criminals with credentials to access financial accounts.

“We’ve disrupted a critical source of money-making for digital fraudsters and cyber thieves, while gaining important information to help identify those responsible and better protect victims,” said Richard Boscovich, senior attorney for the Microsoft Digital Crimes Unit, which handled the investigation in collaboration with the financial industry.

Microsoft’s Digital Crimes Unit is worldwide team of investigators, lawyers, analysts and other specialists who fight cybercrime. A year ago they helped U.S. authorities take down a botnet known as Rustock that had been one of the biggest producers of spam e-mail. Some security experts estimated that in its heyday Rustock was responsible for half the spam in junk email bins.

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Motorola Goes After Apple

Motorola has filed a new lawsuit in Florida charging Apple with six patent infringements in the iPhone 4S and four of those patents in iCloud.

The suit names the same six patents that Motorola cited in its complaint against Apple filed in 2010 in the same court. Motorola tried to add the iPhone 4S and iCloud to the list of Apple products in the original suit but the judge ruled that it was too late to do so.

The new suit is notable amid the lengthy battle between Motorola and Apple because it must have been sanctioned by Google, noted Florian Mueller, who has been closely following mobile patent lawsuits, in a blog post. Mueller is a patent expert who is sometimes paid by companies including Microsoft for his work.

The merger agreement between Google and Motorola stipulates that Motorola not assert any new intellectual property actions without an agreement in writing by Google. That means Google must have expressly authorized Motorola to pursue this new case, filed in the U.S. District Court for the Southern District of Florida.

Many experts believe that Google may have agreed to purchase Motorola for the cellphone maker’s extensive intellectual property portfolio, since Android has come under attack in the courts by companies including Microsoft and Apple.

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Hitachi-LG Executives Plead Guilty

Three executives at Hitachi-LG Data Storage (HLDS) have agreed to plead guilty and serve prison time in the U.S. for their participation in a number of conspiracies to rig bids and fix the prices of optical disk drives sold to large computer manufacturers, the U.S. Department of Justice announced Tuesday.

Young Keun Park, Sang Hun Kim and Sik “Daniel” Hur conspired with others to suppress competition by rigging bids for optical disk drives sold to Dell and Hewlett-Packard and to fix prices for optical disk drives sold to Microsoft, the DOJ said. The conspiracies happened at various times between November 2005 and September 2009, the DOJ said.

Under a plea agreement in U.S. District Court for the Northern District of California, Park and Kim each have agreed to serve eight months in prison and Hur has agreed to serve seven months in prison. Each has also agreed to pay a US$25,000 fine.

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Yahoo Wins Major Lawsuit

Yahoo has achieved a big victory against spammers, a legal victory that also includes a default judgment of $610 million.

In the lawsuit, filed in May 2008, Yahoo targeted a variety of individuals and companies, accusing them of trying to defraud people via a spam campaign that falsely informed email recipients that they had won prizes in a non-existent Yahoo-sponsored lottery.

Yahoo alleged that the defendants’ goal was to trick email recipients into providing them with personal and financial information that could be used to commit fraud by raiding victims’ bank accounts, using their credit cards and applying for loans on their behalf.

Judge Laura Taylor Swain from the U.S. District Court for the Southern District of New York ruled that Yahoo’s allegations are “uncontroverted” and said the company is entitled to $27 million in statutory damages for trademark infringement and $583 million in statutory damages for violation of the CAN-SPAM Act.

It’s not clear whether Yahoo will be able to collect the money. A default judgment is rendered when defendants in a case fail to plead or defend an action, as happened in this case, in which the defendants never responded to Yahoo’s complaint.

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