Target Corp. on Wednesday said it reached a proposed settlement of $39 million with banks seeking to recoup money spent on reimbursing fraudulent claims associated with the massive data breach the retailer suffered in 2013. The agreement includes $20 million for settlement class members and sets aside $19 million for MasterCard’s account data compromise program.
“We are pleased that the process is continuing to move forward,” a Target spokeswoman said.
The data breach, which occurred during the busy holiday shopping season, exposed up to 40 million credit cards and compromised the personal information of up to 70 million consumers. The incident contributed to the ouster of former chief executive officer Gregg Steinhafel, who was succeeded by Brian Cornell.
Target has spent about $162 million on issues related to the cyber attack. The retailer in August agreed to pay Visa card issuers as much as $67 million.
Wednesday’s agreement must still be approved by the courts.