Things have turned upside down for MasterCard Inc.(NASDAQ:MA)and Target as their planned settlement has been scrapped off, owing to lack of support. MasterCard had initially announced on Thursday that a settlement has been designed to come to terms with the 2013 data breach.
According to the settlement, MasterCard and Target, were supposed to pay a hefty amount of $19 million to various financial institutions. But sadly, the agreement cannot be termed as successful, because the companies could not come to terms with enough number of banks to go through with the deal.
The deal was basically brought into the bigger frame last month, where it was decided that MasterCard and Target would pay $19 million to numerous banks and credit organizations. The hefty amount of the settlement can be considered the price for the huge data breach that took place in the year 2013, leaving behind a huge amount of confidential and personal data out in the open.
The legal counsel has stated that the amount that MasterCard and Target is looking to pay for the settlement is way less that what the effect of the data breach actually costs. In fact, the legal counsel has also stated that MasterCard and Target have intentionally planned to go through with the $19 million settlement amount to underpay the affected.
The experts believe that this is the perfect time for the banks and other credit organizations to push forward and demand more money from MasterCard and Target. The estimated loss owing to the data breach is approximately about $160 million, which is about 8.5 times of what MasterCard and Tarfet were planning to settle with. The data breach had affected more than 40 million credit cards, including personal information of about 110 million individuals.