MasterCard Issuers Reject Proposed Deal in Target Breach Case (May 26, 2015)
A settlement between MasterCard and Target stemming from the retail giant’s 2013 data breach has been scrapped after failing to earn approval by enough MasterCard-issuing banks. Under terms of the settlement, first announced last month, Target would have paid $19 million to MasterCard issuers to cover costs stemming from the data breach, including replacing 40 million MasterCard-branded payment cards. However, the settlement was contingent upon gaining the approval of MasterCard-issuing banks representing at least 90 percent of affected account holders by May 20. That threshold had not been met by the time the deadline passed last week, according to Reuters, leaving the banks to continue to pursue their claims in the suit, which was filed in federal court in Minnesota. Meanwhile, Target remains in negotiations with Visa on a deal to reimburse that payment network’s issuing banks. In March, Target agreed to a $10 million settlement in a class action lawsuit brought by consumers.