Retail giant Target has come up with a proposal, under which it will pay $10 million for the settlement of a class-action lawsuit related to a data breach during the 2013 holiday shopping season.

On Thursday morning, the proposed settlement, which requires the approval of a federal judge, will be the subject of a hearing in St. Paul, Minn.

While citing court documents, KMSP has reported that the money would be used for the establishment of a general fund, with individual victims eligible for up to $10,000 in compensation. Reuters has reported that a dedicated website would be set up for the handling of individual claims.

Previously, Target has said that around 40 million credit cards were compromised in the breach, which led to the theft of as many as 110 million people's personal information.

A federal judge, in December, has ruled that most of the lawsuits against Target that are related to the breach could reject the company's claim that the consumers could not establish that injury had been done to them.

Target has confirmed to CBS News that it is ready to pay $10 million under a proposed settlement in a class-action lawsuit stemming from a massive 2013 data breach.

Molly Snyder, Target spokesperson, on late Wednesday told CBS News, “We are pleased to see the process moving forward and look forward to its resolution”.

According to the court documents, the proposed settlement, which must get the approval by a federal district court judge, will create a settlement account that could pay individual victims up to $10,000 in damages.

The data breach, which was one of largest of its kind, was occurred between November 27 and December 15, 2013, during the busy holiday shopping season. In the breach, information from around 40 million credit and debit cards was stolen.