Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Panel to hear Heartland case today
LOUISVILLE, Ky. (5/27/09)--The U.S Judicial Panel of Multidistrict Litigation will convene a national panel of seven judges today in Louisville, Ky., to hear oral arguments in the Heartland Payment Systems data breach lawsuit. The panel will decide whether the case should be rolled into class action lawsuits. The panel’s decision will impact credit unions involved in litigation against the company. Actions against Heartland Payment Systems were filed in 12 U.S. district courts. The MDL panel was created by an Act of Congress in 1968, according to its website. The panel will determine whether civil actions pending in different federal districts involve one or more common questions of fact. If so, the actions could be transferred to one federal district for coordinated or consolidated pretrial proceedings. The panel also will select the judge or judges and court assigned to conduct such proceedings. Centralizing the court process would avoid duplication of discovery, prevent inconsistent pretrial rulings, and conserve the resources of the parties, their counsel and the judiciary. Heartland Payment Systems has spent or earmarked more than $12.6 million to cover costs associated with the widespread intrusion of its data systems discovered in January, according to CEO Robert Carr (Computerworld May 18). As of March 2, more than 560 financial institutions, including at least 178 credit unions, had to reissue credit and debit cards as a result of the Heartland breach. Three credit unions joined two banks in a class action lawsuit against Heartland to recoup losses related to the breach announced Jan. 20 (News Now March 2). The credit unions are: GECU, a $1.146 billion asset credit union in El Paso, Texas; MidFlorida FCU, a $1.283 billion asset credit union in Lakeland, Fla.; and Matadors Community CU, a $123 million asset credit union in Chatsworth, Calif., according to documents filed in court. They join Amalgamated Bank of New York, N.Y., and Farmers State Bank, headquartered in Marcus, Iowa, in the complaint, which was filed Feb. 20 in the U.S. District Court, Trenton, N.J., by Chimicles & Tikellis LLP, Haverford Pa., the lead attorneys in the case. They are seeking to recoup money for the cost of reissuing cards to their members/customers and for their costs related to fraudulent activity stemming from the breach.
Other Resources

RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
1 hour ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
3 hours ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
3 hours ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
3 hours ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
5 hours ago