Target settles data breach suit with MasterCard

Target has offered $19 million to banks and credit unions that issue MasterCards to settle a lawsuit over the discount retailer’s massive 2013 data breach.

The funds will help issuers with operating costs related to the breach and any losses on cards from fraud. The settlement will take effect if at least 90 percent of eligible issuers accept the offer by May 20, according to The Associated Press.

{mosads}The Target breach compromised 40 million credit and debit card accounts during the Christmas shopping season in 2013, rattling the retail industry. The hack led to the ouster of then-CEO Gregg Steinhafel as the company suffered from lower sales and profits.

Target is working to settle with victims of the breach for a total of $10 million. Individuals will be eligible for up to $10,000 each, but must establish that they spent time and money addressing unauthorized, unreimbursed charges on their accounts. That 97-page settlement was agree to on March 9.

As of February, Target had paid a whopping $162 million on investigations, identity monitoring services and legal fees related to the breach, setting a new record.