Banks Attempt To Stop Settlement Between Mastercard and Target

By: jcabacungan  |  May 5, 2015

As Target and Mastercard have come to an agreement that Target must pay $19 million to banks and credit companies affected by the breach back in 2013, some smaller banks are quite upset. They oppose the settlement due to the fact that this deal would presumably cut down their own claims for losses.

As such, these banks are attempting to block the settlement from being accepted.

The motion sent seeks to eliminat some terms that prevent others from jining in the lawsuit. Zimmerman Reed PLLP issued the following statement regarding the settlement and how it affects other companies:

“The agreement between Target and MasterCard is nothing more than an attempt by Target to avoid fully reimbursing financial institutions for losses they suffered due to one of the largest data breaches in U.S. history.” He further claims this “sweetheart” deal has left out some major parties and groups which should be represented in the deals made.

Target claims that the sum is meant to cover costs banks and credit companies had due to the issuing of new cards. Therefore, they believe the deal is more than fair.

The settlement is still on its way to court for acceptance, but due to the motion sent, there are some roadblocks to overcome still.