Proposed VISA/Heartland Data Breach Settlement May Pay Banks and Credit Unions Pennies on the Dollar – plaintiffs

Wednesday, January 20, 2010

According to Interim Co-Lead Counsel in the Class Action Lawsuit in Houston Federal Court:

Banks and credit unions that issued VISA payment cards compromised by the Heartland Payment Systems data breach, the largest data breach in history, should carefully review the proposed settlement between Heartland and VISA.

The proposed settlement has many weaknesses: (1) it may offer little compensation to payment card issuers, (2) it gives banks and credit unions little time to decide whether to participate, (3) it releases Heartland and other parties that may be liable, and (4) it is being touted for reasons that are not entirely accurate.

Notice of the proposed settlement was communicated to banks and credit unions throughout the country on January 14. Both VISA and Heartland are aggressively pushing the settlement on the eligible VISA issuers by giving them only until January 29—a total of 15 days—to decide whether to participate. Court appointed Interim Co-lead Counsel representing the proposed class of VISA issuers against Heartland in the pending class action lawsuit in Houston federal court, however, say not so fast—the proposed settlement is not as generous as Heartland and VISA want you to believe.

Read the entire press release here.

Original Source: http://www.databreaches.net/?p=9540
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