Walmart’s (NYSE:WMT) lawsuit against Capital One (COF) was dismissed by a U.S. District judge after the two parties resolved all claims and counterclaims between themselves. Terms of the settlement were not disclosed.
The lawsuit stems from Walmart’s (WMT) decision to terminate its agreement for Capital One (COF) to serve as the exclusive issuer of Walmart co-branded credit cards. As part of the initial agreement, Walmart (WMT) established certain standards of customer service with Capital One (COF) that were outlined in 20 “Service Level Agreements.” By their own admission, Capital One (COF) reported a series of SLA failures to Walmart (WMT) within a six-month period from August 2022 to January 2023. As a result of these failures, Walmart (WMT) attempted to terminate its agreement with Capital One (COF), leading the bank to dispute the termination believing that the termination could only be invoked for failing to meet the same SLA five or more times in a 12-month period.
The judge ruled in March that Walmart’s (WMT) motion to terminate its agreement with Capital One (COF) was granted and Capital One’s (COF) counterclaim was denied. Both were then directed by the judge to submit a joint letter addressing proposals for resolving the remaining claims and counterclaims in this matter.
Walmart (WMT) shares last traded 0.7% higher, while Capital One (COF) shares were 1.5% lower.