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Target Corp.'s proposed $19 million settlement with MasterCard over its late 2013 data breach became null and void after the deal failed to garner enough support from the impacted financial institutions.
The out-of-court agreement hinged on at least 90 percent of the banks affected by the breach approving the settlement by May 20 in order for it to take effect. Target and MasterCard have confirmed that level of support was not met this week, according to published reports.
This turn of events may send the dispute between the affected banks and Minneapolis-based Target back to a federal lawsuit that is seeking class action status and is making its way through U.S. District Court in St. Paul, Minn.
Further, MasterCard is reportedly working on an alternative solution, though has thus far not elaborated, according to published reports.
Attorneys for the plaintiffs in that federal lawsuit had unsuccessfully tried to block the settlement, claiming that the MasterCard settlement was not a good deal for the banks. The case is expected to go to trial next March.
Meanwhile, Target reportedly has been in talks with Visa about trying to reach a similar settlement.