Will MasterCard & Target Renegotiate? Posted by AVCU on 4:38 PM

Online publication CU Info Security released an article this week quoting an industry analyst's opinion that MasterCard and Target will likely renegotiate their derailed settlement in order to avoid lengthy litigation. But, and attorney representing banks and credit unions in a class-action lawsuit against Target says their suit will push forward.

Target's proposed $19m settlement failed to get enough support from financial institutions thinking the amount inadequate, deciding instead to push forward with their class-action suit. Ninety percent of the eligible card issuers needed to opt for the settlement by May 20th. An ABA survey of 535 banks last year found that almost 3/4 of banks with assets below $1 billion did not receive any reimbursement for breaches between 2009 and 2014, while all banks with assets above $50 billion were reimbursed.

Earlier this Spring banks tried to block MasterCard's settlement with Target in court, but U.S. District Judge Paul Magnuson denied the effort. Although he said there was no legal justification for blocking settlement in the court, he also questioned the settlement's fairness, which started at $26m and ended up at $19m.

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