Newsroom

April 30, 2015

Judge: Target settlement not 'fair'

U.S. District Judge Paul Magnuson in Minnesota responded to arguments that Target and MasterCard cut out the class action financial institutions of the agreement to settle for $19 million – saying "I just can't see where that's fair."

Class counsel protested that Target left the clients – three banks and one credit union – out of the negotiations, saying Target "was trying to hijack the class action and use MasterCard to foist a cheap deal on banks beholden to the credit card company," according to Reuters.

Magnuson noted there was "zero representation of the named class members in this proceeding," and raised concerns that Target had used MasterCard to get banks to give up their claims in the class action suit. Because the class had not been certified, however, Target's counsel said its negotiations were fair.

Banks that use MasterCard must decide by May 20 if they want to participate in the settlement. Class counsel asked for an injunction on behalf of its financial institution clients; Magnuson did not rule on it, but said he would try to issue an order soon.