The 2013 data breach continues to cost Target.
Target Corp. is set to pay $39.4 million in a settlement agreement to resolve claims by banks and credit unions that lost money due to the 2013 data breach at Target.
According to a report by Reuters, this latest preliminary settlement, which was filed Wednesday with the U.S. District Court in St. Paul, Minn. and requires court approval, marks the latest in a series of settlements and covers all financial institutions that issued payment cards put at risk by the breach, and which did not previously release their claims against Target.
Target has said at least 40 million credit cards were compromised in the breach, and that as many as 110 million people may have suffered the theft of personal information such as email addresses and phone numbers.
Under the settlement, Target would pay as much as $20.25 million to banks and credit unions, and $19.11 million to reimburse MasterCard Inc. card issuers. Target had reached a similar settlement with MasterCard in April, but it was rejected the next month when card issuers deemed the sum too low.
Reuters reported that earlier this year, Target agreed to pay Visa Inc. card issuers as much as $67 million over the breach and reached a $10 million settlement with shoppers. The latter won court approval last month. Last week, Target said it has spent $290 million related to the breach, and expects insurers to reimburse $90 million.
Target continues to face shareholder lawsuits, as well as probes by the Federal Trade Commission and state attorneys general, over the breach.