MINNEAPOLIS—A judge here has denied a request from small banks and credit unions that sought to block a portion of Target’s recent $19-million settlement with MasterCard over the 2013 data breach.
U.S. Judge Paul Magnuson did say in his opinion, however, the parts of the settlement agreement “do not appear altogether fair or reasonable.”
Magnuson said he found no indication MasterCard is misleading or coercing banks and credit unions into accepting terms of the settlement.
“Although the settlement may not ’pass the smell test,’ as the saying goes, it is not serious misconduct,” the judge wrote in his decision.
The $19-million settlement includes a traditional provision that prohibits financial institutions that participate in the pact to seek other reimbursement claims. Smaller institutions had been hoping to block part of the deal in an effort to remove that provision.
Plaintiffs in the court case continue to seek class action status.