Jathon Sapsford and Kara Scannell report in the Wall St. Journal on MasterCard's settlement of the merchant's debit card lawsuit.

While terms of the settlement weren't disclosed, people familiar with the matter confirmed that it involved damages of about $1 billion. It isn't clear whether the settlement will be paid completely in cash. It also leaves Visa, the other large credit-card brand jointly owned by member banks, alone to face the retailers at trial in New York federal court.

The Associated Press reported this morning that MasterCard has agreed to a last minute settlement with retailers in the debit card lawsuit scheduled to go to trial this morning.

The surprise announcement by U.S. District Judge John Gleeson left Visa USA as the only remaining defendant in the closely watched lawsuit. Gleeson gave no details of what he called the "11th-hour settlement," saying only: "The case is settled as to MasterCard." He ordered MasterCard, as well as Wal-Mart and other plaintiffs in the suit not to speak publicly about the settlement. "I don't want this jury pool tainted by that," the judge said, before he began questioning potential jurors for what was left of the suit. Opening arguments were expected later Monday in Brooklyn federal court.