ST. PAUL, Minn. (4/29/15)--The judge overseeing matters related to the Target breach did not rule Monday on whether to approve the motion filed by financial institutions to block part of the $19 million settlement recently reached between by Target and MasterCard.
U.S. District Judge Paul Magnuson held a hearing on the injunction Monday, but did not issue a ruling on the matter, according to The Wall Street Journal.
Credit unions and other financial institutions have filed a class action lawsuit against Target, but the recently announced settlement could jeopardize their ability to proceed. The proposed settlement requires 90% of eligible MasterCard issuers affected by the breach to drop any additional claims, including the federal lawsuit (Minneapolis Star-Tribune April 22).
The proposed settlement would fall well short of reimbursing credit unions and other financial institutions the real costs they suffered as a result of the breach, the attorney representing the plaintiffs said (Minneapolis Star-Tribune April 18).
The financial institutions involved also said the settlement funds would cover only a "minimal portion of the actual damages," according to The Journal.
Instead, through the motion, financial institutions are essentially asking to be allowed to pursue additional compensation themselves, a change to typical settlement deals that usually require the surrender of all rights to subsequent claims once a settlement has been reached.
CSE FCU, Lake Charles, La., is among the financial institutions included in the lawsuit against Target.