Briefcase: Target, MasterCard settlement scrapped
NEW YORK – A $19 million deal between Target and MasterCard to settle lawsuits stemming from the retailer’s massive pre-Christmas 2013 data breach has been scrapped, because it failed to get enough support from the affected banks and credit unions.
While the rejection sends the companies back to the drawing board, advocates for the financial institutions said they were pleased, claiming the settlement would have provided compensation for just a fraction of the losses.
Under the settlement announced last month, Target Corp. agreed to set aside $19 million for banks and credit unions that had issued MasterCards swept up in the breach that compromised 40 million credit and debit card accounts between Nov. 27 and Dec. 15, 2013.
Banks and credit unions would have been able to use the money to cover operating costs and fraud-related losses stemming from the breach. But the settlement needed 90 percent of the issuers to accept the offer in order for it to go into effect.
MasterCard Inc. would only say Friday that not enough issuers approved the deal. It would not reveal exactly how close it got to the 90 percent threshold.
“At this stage, we will continue to work to resolve the matter,” the company said in a statement.
Minneapolis-based Target confirmed that it had been notified by MasterCard of the development and declined further comment.
Target shares rose 2 cents to $79.41 in afternoon trading, while MasterCard shares rose 8 cents to $92.98.
BlackBerry CEO pay package value drops
TORONTO – BlackBerry chief executive John Chen saw the value of his total pay package drop 96 percent to $3.4 million last year as he worked to turn around the money-losing company.
Most of the decline was due to share-based awards Chen received when he joined the company in 2013.
The share repurchase helped send the company’s stock higher Friday, rising more than two percent to $12.82 near midday.
Chen received 13 million shares of BlackBerry that will be paid out over five years. The total amount of $84.8 million in share-based awards was recognized as part of his compensation package of $85.7 million in fiscal 2014.
BlackBerry announced plans late Thursday to buy back up to 12 million of its common shares or about 2.6 percent of the number outstanding.
Idaho unemployment remains at 7-year low
Idaho’s unemployment rate remained at a seven-year low of 3.8 percent in April, state officials said.
More than 760,000 Idaho residents were working last month, according to the state Department of Labor. The percentage of working-age adults with jobs or looking for work rose to 64 percent, the highest labor participation rate since 2013.
A healthy housing market led to gains in both the construction industry and the financial sector. Most industry groups had hiring gains during April with the exception of mining and logging.
Kootenai County’s unemployment rate remained at 4.6 percent in April, unchanged from March.
April unemployment rates in other North Idaho counties were: Benewah, 4.9 percent; Bonner 5.5 percent; Boundary, 4.9 percent; and Shoshone, 7.4 percent.