Target Settlement With MasterCard Fails To Get Bank Support
NEW YORK (AP) — A $19 million deal between Target and MasterCard to settle lawsuits stemming from the retailer's pre-Christmas 2013 data breach has been scrapped, because it didn't get enough support from banks and credit unions.
Under the settlement announced last month, Target Corp. agreed to set aside $19 million for banks and credit unions that had issued MasterCards swept up in the breach that compromised 40 million credit and debit card accounts.
Banks and credit unions would have been able to use the money to cover related operating costs and fraud-related losses. But the settlement needed 90 percent of the issuers to accept the offer in order for it to go into effect.
MasterCard Inc. says that not enough issuers approved the deal and that it's still working to resolve the matter.
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