By Jonathan Stempel
NEW YORK (Reuters) – Walmart (NYSE:) settled its lawsuit against Capital One over its credit card partnership, which had made Capital One the exclusive issuer of Walmart-branded consumer credit cards before the end of the month past.
The case was dismissed Thursday by U.S. District Judge Katherine Polk Failla in Manhattan after the companies resolved all claims and counterclaims. The terms were not disclosed.
Failla had ruled in March that Walmart could end the partnership early because Capital One's customer service had not been sufficient. The partnership began in 2019.
A spokeswoman for Bentonville, Arkansas-based Walmart declined to comment Friday.
Capital One, based in McLean, Virginia, and its lawyers did not immediately respond to requests for comment.
Walmart, the world's largest retailer, sued Capital One in April 2023, saying the bank was too slow to post transactions in cardholders' accounts and did not replace lost cards promptly.
Capital One responded that its alleged failures did not justify terminating the partnership, which both companies considered a “nuclear option.”
In announcing the end of the partnership, Capital One said it would convert eligible Walmart-branded cards to other cards and that cardholders would not lose any accrued rewards.
Capital One agreed in February to buy credit card rival Discover Financial Services (NYSE:) in an all-stock transaction valued at $35.3 billion.
The case is Walmart Inc et al v Capital One NA, US District Court, Southern District of New York, No. 23-02942.
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