By Jonathan Stempel
NEW YORK (Reuters) – Walmart (NYSE:) has settled its lawsuit against Capital One over its credit card partnership, which made Capital One the exclusive issuer of Walmart-branded consumer credit cards, before it ended 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.
Failla had ruled in March that Walmart could end the partnership prematurely because Capital One’s customer service was inadequate. The collaboration started 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 to cardholders’ accounts and failed to promptly replace lost cards.
Capital One countered that its alleged failures did not justify ending the partnership, which both companies viewed as a “nuclear option.”
In announcing the end of the partnership, Capital One said it would convert eligible Walmart-branded cards into other cards, and cardholders would not lose 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.
