A $19 million preliminary agreement between Target and MasterCard over the huge 2013 payment-card data breach is off the table after banks refused to back the deal.
The proposed out-of-court agreement required that at least 90 percent of banks affected by the breach approve the settlement. MasterCard said that not enough financial institutions accepted the offer, so it will not got into effect.
“At this stage we will continue to work to resolve the matter,” MasterCard said in a statement Friday.
The lawsuits were brought on behalf of consumers whose credit/debit card information or personal information was stolen as a result of the Target Data Breach.
Financial institutions which issued MasterCard credit cards affected by the 2013 breach say they lost about $160 million. That sum includes fraudulent charges to credit cards of $79 million, and an estimated $88 million to reissue cards.
MasterCard Deal Not Connected to Consumer Settlement
Meanwhile, a settlement between Target and consumers that comprise a class-action lawsuit was announced in March. At least 40 million payment card consumers may have been affected.
On December 19, 2013, Target announced that it had been the victim of a criminal attack on its computer network by third-party intruders who stole payment card data from in-store Target shoppers from November 27 through December 18, 2013. The intruders also stole personal information, such as email and home addresses from other Target customers.
Lawyers representing consumers claim that Target did not adequately protect their payment card data and personal information and that Target delayed in providing notice of the data breach. Target denies any wrongdoing.
Consumer Claims Must Be Filed by July 31
Consumers affected by the breach must submit an online or hard copy claim by July 31, 2015 to be included in any compensation. A final approval hearing on the consumer settlement is scheduled for November 10, 2015.
According to the consumer settlement site, you are a affected by the settlement if your credit/debit card information and/or your personal information was stolen as a result of the Target Data Breach.
You are a member of the “Settlement Class” if:
- You shopped at a Target store and used your credit or debit card from November 27 through December 18, 2013;
- You provided your contact information to Target any time before December 18, 2013; or
- Your bank, credit card company, or other financial institution issued you a new credit or debit card shortly after December 2013; and the letter accompanying the new card said that your old card may have been compromised.