Jonathan Stempel
NEW YORK (Reuters) – Walmart (NYSE:) has settled a lawsuit against Capital One over its credit card partnership, making Capital One the exclusive issuer of Walmart-branded consumer credit cards until it expired last month.
The case was dismissed Thursday by U.S. District Judge Katherine Polk Failla in Manhattan after the companies resolved all claims and counterclaims. Terms were not disclosed.
In March, Failla ruled that Walmart could end the partnership early because Capital One’s customer service was unsatisfactory. The partnership began in 2019.
A spokeswoman for Walmart in Bentonville, Arkansas, 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 process cardholder transactions and failed to quickly replace lost cards.
Capital One countered that the alleged failures did not justify ending the partnership, which both companies considered the “nuclear option.”
In announcing the end of the partnership, Capital One said it will convert eligible Walmart-branded cards to other cards and cardholders will not lose any accumulated rewards.
In February, Capital One agreed to buy credit card rival Discover Financial Services (NYSE:) in an all-stock deal valued at $35.3 billion.
The case is Walmart Inc et al v. Capital One N.A., U.S. District Court, Southern District of New York, No. 23-02942.