Target, MasterCard reach $19 million breach settlement
Minneapolis – Target Corp. has entered into a settlement agreement with MasterCard International Inc.to resolve losses from the data breach that Target experienced during the fourth quarter of 2013. Under the agreement, alternative recovery offers will be made by MasterCard to eligible MasterCard issuers worldwide that claimed to have been affected by the data breach.
Target has agreed to fund up to $19 million pre-tax in alternative recovery payments. The settlement is conditioned on issuers of at least 90% of the eligible MasterCard accounts accepting their alternative recovery offers. Assuming that all conditions to consummation of the settlement have been satisfied, accepting issuers will be paid by the end of the second quarter of 2015.
“We are hopeful that Target’s agreement to pay up to $19 million to settle the claims of MasterCard and its issuers will result in a high level of issuer acceptance,” said Scott Kennedy, president, financial & retail services at Target “Target intends to continue to defend itself vigorously against any assessments made by MasterCard on behalf of MasterCard issuers that do not accept their offers.”
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