According to Credit Union Times on 5/22/15, the proposed $19 million settlement to cover financial institutions' losses from the 2013 Target data breach has failed, credit unions and banks believe public data security fears provide a strong hand in future talks. Credit unions and banks never liked the $19 million settlement between Target and MasterCard, which is well below card issuer estimates of nearly $18 billion.Acceptance of the Target settlement needed approval by 90% of MasterCard issuers by May 20th, which was not attained. Reportedly, credit unions led the opposition, according to one analyst.
The deal now moves back to negotiations, along with the renewed prospect of going to trial. Lawyers for the card issuers applauding the settlement's rejection in a May 22nd press release.
"We are pleased that financial institutions have resoundingly rejected Target and MasterCard's attempt to avoid fully reimbursing the losses suffered during one of the largest data breaches in U.S. history," said a statement issued by attorneys Charles Zimmerman and Karl Cambronne. "Financial institutions clearly saw through Target's misleading statements and efforts to extinguish pending legal claims for pennies on the dollar. We will continue working to hold Target accountable and ensure that all affected financial institutions receive proper compensation for losses resulting from this data breach."
Read the Credit Union Times article in entirety here. A subscription is required.
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