Judge In Target Data Breach Litigation Declines To Block Mastercard Settlement

Senior U.S. District Court Judge Paul Magnuson issued an order  on Thursday, May 7 denying a request by counsel for card issuer banks to enjoin the settlement of data breach related claims negotiated between Target and MasterCard.  As we have previously reported, the proposed settlement would provide compensation to MasterCard-issuing banks for fraud losses and the cost of reissuing credit and debit cards.  Banks that agree to accept the settlement are required to release all data breach claims against Target arising from compromised MasterCard accounts.  Crediting substantive objections to the proposed settlement, Judge Magnuson wrote that "[t]he Court agrees with Plaintiffs' counsel that the terms of the settlement do not appear altogether fair or reasonable."  He also signaled disapproval of conducting settlement negotiations outside of the court proceedings without participation by or notice to class counsel, stating that "the way this issue has arisen