Target, MasterCard Pact To Clear High Buy-In HurdleApril 16, 2015 – In The News
Scott L. Vernick was quoted in the Law360 article, “Target, MasterCard Pact To Clear High Buy-In Hurdle.” Full text can be found in the April 16, 2015, issue, but a synopsis is below.
On April 15, Target announced a $19 million deal to resolve data breach claims brought by issuers of MasterCard-branded payments cards.
The deal hinges on 90 percent of the issuers accepting the alternative recovery offer by May 20, a threshold that attorneys say is likely to be met despite skepticism from some credit unions and banks.
According to attorneys, the predicament now facing eligible payment card issuers is a classic “bird in the hand is worth two in the bush” situation, which could help lead to a higher acceptance of the deal.
“By virtue of participating in the settlement, a card issuer will get 'x' dollars today, instead of spending 'x' dollars and trying to figure out if they're going to end up in a better place,” said Scott Vernick, a noted privacy attorney. “As long as the settlement amount is reasonably close to what they're out, considering all the other factors, there is a strong likelihood that the buy-in threshold will be met.”
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