Dive Brief:
- Target’s proposed $19 million settlement with MasterCard over its data breach during the 2013 holiday season has failed to get approval from the affected banks and credit unions.
- Card issuers say that the funds set aside would cover only a fraction of the lawsuits stemming from the holiday data breach, which compromised 40 million credit and debit card accounts.
- Target and MasterCard must now continue to negotiate a settlement that satisfies at least 90% of the affected card issuers.
Dive Insight:
Banks and credit unions have shot down Target’s plan to set aside $19 million to cover costs related to the retailer’s massive holiday 2013 data breach. Counsel for the affected lenders complained that the proposed settlement terms were insignificant compared to the claims.
The breach was one of the largest to date, compromising more than 40 million credit and debit card accounts. Target and MasterCard must now continue to negotiate a settlement that card issuers accept. “At this stage, we will continue to work to resolve the matter,” MasterCard Inc. said in a statement.