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Alabama State Employees Credit Union files suit against Target

The fallout from the Target data breach took a different turn this week as Alabama State Employees Credit Union, based in Montgomery, filed a class action lawsuit. According to the CU Journal, the lawsuit appears to be the first by a financial institution. Alabama State Employees lawsuit seeks compensation for financial losses from defrauded deposits, along with costs from closing accounts, reissuing new checks, debit and credit cards. 

"Credit unions will stand in the shoes of all the financial institutions that have incurred losses," Wilson Daniel Miles III, an attorney at Beasley Allen Crown Methvin Portis & Miles PC told the Credit Union Journal. "We will clean up the mess that Target caused."
This is the second class action filed against Target by this Montgomery-based firm. They also filed a class action suit Dec. 20 on behalf of consumers whose credit and debit card information was compromised at Target stores. Under Alabama law, ASECU must initially ask for a minimum of $5 million in damages, but Miles expects the final figure to be in the "hundreds of millions of dollars" after other financial services firms join the class action.

You can read the full CU Journal story here.