Target Reaches Settlement with Visa over Data Breach

Case: In re: Target Corp. Customer Data Security Breach Litigation

Issue: Target Corp.’s (Target) $67 million settlement with Visa Inc. (Visa) to reimburse card issuers for costs incurred from the 2013 data breach.

Case Summary: Target reached an agreement with Visa to pay approximately $67 million to reimburse card issuers for costs incurred from the 2013 data breach.

The settlement agreement was conditioned on Visa’s confirmation that a subset of issuers that represented the majority of the Visa cards that Visa determined were at risk from the breach settled with Target and Visa. The agreement was ratified on August 18, 2015.

The settlement agreement also stipulated that Visa issuers will receive more if Target reaches a settlement with MasterCard that provides for greater than the average of $3.01 per account that is covered by that settlement.

Bottom Line: The deadline for eligible issuers to accept their alternative recovery offers is September 4, 2015.