And the cash register continues to ring with respect to the Heartland Payment Systems Inc. breach.
Heartland disclosed last week in a filing with the Securities and Exchange Commission that it has agreed to pay a maximum of $60 million to Visa Inc. and Visa card-issuing banks to settle claims arising out of the massive payment card data breach last January.
The proposed settlement is conditioned on 80% of eligible banks accepting the settlement offers. Under the agreement, some $59.2 million of the maximum settlement amount would be available to pay Visa card-issuing banks for their costs associated with the data breach. An additional $780,000 would be used to clear fines related to the breach collected by Visa from banks. According to the agreement, settlement offers will go out to eligible Visa-issuing banks next week and must be accepted by January 29.
More information: The full text of the Settlement Agreement
Showing posts with label Securities and Exchange Commission. Show all posts
Showing posts with label Securities and Exchange Commission. Show all posts
Monday, January 11, 2010
Monday, December 21, 2009
The real cost of data breaches - Heartland to pay Amex $3.5 million
According to its 8-K filing with the Securities and Exchange Commission (SEC), Heartland Payment Systems Inc. has agreed to pay American Express Travel Related Services Co. Inc. just over $3.5 million to settle any claims arising out of a massive payment card data breach.
This settlement is likely to be only the first over the compromise of tens of millions of debit
and credit card accounts by malicious software planted on Heartland's computers
that the Princeton, N.J.-based payment card processor revealed in January of this year.
On November 12, Heartland filed a Form 8-K with the SEC, stating that it had doubled from $35.6 million to $73.3 million its anticipated breach expenses for 2009, because it expected to settle litigation related to the breach.
Heartland faced a total of 17 consumer class actions and 10 bank and credit union class actions related to the breach, which were consolidated in the U.S. District Court for the Southern District of Texas. According to the Form 8-K filing, the newly announced settlement agreement
would release Heartland from any claims raised by AmEx or its issuing banks. The filing did not indicate whether the settlement is subject to court approval and did not include a copy of the agreement.
This settlement is likely to be only the first over the compromise of tens of millions of debit
and credit card accounts by malicious software planted on Heartland's computers
that the Princeton, N.J.-based payment card processor revealed in January of this year.
On November 12, Heartland filed a Form 8-K with the SEC, stating that it had doubled from $35.6 million to $73.3 million its anticipated breach expenses for 2009, because it expected to settle litigation related to the breach.
Heartland faced a total of 17 consumer class actions and 10 bank and credit union class actions related to the breach, which were consolidated in the U.S. District Court for the Southern District of Texas. According to the Form 8-K filing, the newly announced settlement agreement
would release Heartland from any claims raised by AmEx or its issuing banks. The filing did not indicate whether the settlement is subject to court approval and did not include a copy of the agreement.
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