To resolve claims by banks and credit unions that claimed losses from its 2013 data breach, Target has agreed to pay $39.4 million. The settlement, filed on Dec. 2, resolves class action claims by lenders seeking to hold Target responsible for the institutions’ costs to reimburse fraudulent charges and issue new payment cards, according to a Reuters report.
Target will pay as much as $20.25 million to banks and credit unions and $19.11 million to reimburse MasterCard Inc. card issuers. The settlement won preliminary approval from U.S. District Judge Paul Magnuson in St. Paul, Minn., according to a PYMNTS.com report. A hearing on final approval is scheduled for May 10, 2016.
Earlier this year, Target agreed to pay Visa Inc. card issuers as much as $67 million over the breach, and the retailer reached a $10 million settlement with shoppers. The latter accord won court approval last month.
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Target has reported that at least 40 million credit cards were compromised in the breach, with as many as 110 million people suffering the theft of their personal information.
Last week, Target said it had spent $290 million related to the breach, and expected insurers to reimburse $90 million of those costs. The retailer still faces shareholder lawsuits as well as probes by the Federal Trade Commission and state attorneys general. Target has taken steps to avoid a recurrence of the breach, including being the first U.S. retailer to install EMV-enabled card readers chainwide.
