Emily Westridge Black in Law360: Banks Won't Let $19M Breach Deal End Target's Woes

04/29/2015

Target Corp.'s bid to quickly exit litigation over its 2013 data breach has been complicated by a new challenge financial institutions have initiated over its $19 million settlement with MasterCard, a development signaling that the battle over how breach costs will be allocated is just getting started, attorneys say...

The settlement is contingent upon at least 90 percent of the eligible MasterCard issuers accepting their alternative recovery offers by May 20. And although the dust-up over the settlement presents an obstacle to Target, it's unlikely that the court will grant the banks' and credit unions' request for a preliminary injunction, Haynes and Boone LLP attorney Emily Westridge Black said.

The settlement Target and MasterCard have in place is similar to a pact Heartland Payment Systems Inc. reached after a 2009 breach affected 100 million payment cards that company held, Black said. Similarly, the settlement is in line with one T.J. Maxx reached with credit card companies after its own massive breach in 2007, she said.

Excerpted from Law360. To read the full article, click here (subscription required).

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