Target Reaches $39.4 Mln Settlement With Banks Over Data Breach

(RTTNews) - Target Corp. (TGT) agreed to reimburse MasterCard Inc. and other U.S. financial institutions a total of about $39.4 million to settle claims brought against the retailer in connection with its massive 2013 data breach.

The agreement includes a payment of up to $20.3 million to settlement class members who aren't covered by other pacts. The remaining $19.1 million will fund MasterCard's Account Data Compromise program relating to the data breach.

The settlement comes on the heels of a $67 million agreement Target struck in August with Visa Inc. on behalf of banks and other firms that issue credit and debit cards.

A previous settlement with MasterCard for $19 million fell through in May when the deal didn't get enough support from the credit card-issuing banks and credit unions.

The settlement is pending court approval with a preliminary hearing scheduled Wednesday in the U.S. District Court for the district of Minnesota. The settlement won preliminary approval from U.S. District Court for the district of Minnesota. Final approval will be next year.