Issuing Banks File Class Action Suit Against Acquiring Banks in Heartland Breach Matter
In an interesting development, a handful of issuing banks impacted by the Heartland breach have filed a class action lawsuit against two acquiring banks related to Heartland Payment Systems. According to this article, the issuing banks are unhappy with Heartland's proposed settlement with Visa. This appears and to be an attempted end-run around the proposed $60 million settlement with Visa. It also may demonstrate that issuing banks are not satisfied with the dispute resolution mechanisms under the Visa Operating Regulations (the Account Data Compromise Recovery process estimated the loss at $140 million, yet the settlement was for only $60 million), and their ability to be made whole under those mechanisms. We will have more analysis of the complaint at a later day. In light of the relative lack of success issuing banks have had in these types of cases, it will be very interesting to analyze the legal theories employed by the issuing banks and track the progress of this matter.
Quickhits: Heartland Settles With Visa for $60 Million
Read all about it here. Note, analyst Avivah Litan of Gartner indicated the "this seems like a very fair settlement, and it seems like Heartland escaped the tremendous costs that TJX incurred - $139 million plus - despite the fact that Heartland's breach was more extensive." In reality TJX settled with Visa for $41 million, and the $139 million figure (wherever she got it from -- this article from June 2009 claims TJX expended $320 million) likely includes both the Visa and Mastercard settlement amounts PLUS the costs and expenses to defend the numerous actions filed against TJX. At this point I doubt that Ms. Litan (or anybody else except Heartland) knows how much Heartland has incurred in expenses to defend the numerous lawsuits and regulatory actions it is facing.
Quickhits: AMEX settles with Heartland Payment Systems for $3.6 Million
Read all about it: HERE.
Who is Minding the Legal Risk Around PCI?
An article I did for the ISSA Journal: Who is Minding the Legal Risk Around PCI?
Heartland Payment Systems Sued By Banks
Heartland Payment Systems has been sued in multiple lawsuits by various banks or credit unions that have had to reissue payment cards in the wake of the Heartland breach.
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