Target Corp. announced yesterday that it has settled the claims of MasterCard International Inc. (MasterCard) against it to reimburse MasterCard and its card issuers for the losses it sustained in issuing new credit and debit cards to customers following the famous Target data breach in 2013. MasterCard and other financial institutions filed suit against Target for costs related to the data breach, which is pending in federal district court in Minnesota.
The settlement will allow eligible banks and credit unions that issued MasterCard cards to customers following the data breach to make claims for reimbursement for operating costs and fraud-related losses on cards believed to have been affected by the data breach. However, the settlement is conditioned on at least 90% of eligible issuers accepting the offer by May 20. MasterCard is recommending that its financial partners accept the settlement and said that the settlement provides a reasonable resolution to the claims.
Target stated that it will continue to vigorously defend any MasterCard or its issuers claims who do not accept the settlement offer