NEW YORK, June 21 (Reuters) - Walmart ( WMT ) settled

its lawsuit against Capital One over their credit card

partnership, which had made Capital One the exclusive issuer of

Walmart ( WMT )-branded consumer credit cards before ending last month.

The case was dismissed on 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 ( WMT ) could end the

partnership early because Capital One's customer service had

fallen short. The partnership began in 2019.

A spokeswoman for Bentonville, Arkansas-based Walmart ( WMT )

declined to comment on Friday.

Capital One, based in McLean, Virginia, and its lawyers did

not immediately respond to requests for comment.

Walmart ( WMT ), the world's largest retailer, sued Capital One in

April 2023, saying the bank was too slow to post transactions to

cardholder accounts, and failed to replace lost cards promptly.

Capital One countered 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 ( WMT )-branded cards to other cards,

and cardholders would not lose accrued rewards.

Capital One agreed in February to buy credit card rival

Discover Financial Services ( DFS ) in an all-stock transaction

valued at $35.3 billion.

The case is Walmart Inc ( WMT ) et al v Capital One NA, U.S.

District Court, Southern District of New York, No. 23-02942.