The proposed $19 million settlement between Target and MasterCard to cover credit card costs associated with the retailers 2013 data breach has fallen apart after not enough banks endorsed it.
The proposal, which was announced in April, required 90% of affected banks accept it by May 20, which did not occur according to a MasterCard spokesman. However, he stated that, “we will continue to work to resolve the matter.”
Originally, MasterCard was demanding a more than $26 million settlement to cover the costs associated with reissuing compromised cards and fraudulent charges. The lawyers representing the banks who brought about the lawsuit against Target were happy with the outcome, stating that “[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,” according to Reuters.