Heartland Settles Consumer Class Action Lawsuits

On Monday, Reuters news service reported that credit card processor Heartland Payment Systems Inc. has agreed to settle its consumer cardholder class action lawsuits related to the company's data breach. Heartland has agreed to:

"... pay up to $2.4 million to class members submitting valid claims. Heartland agreed to pay a minimum of $1 million to class members and take up settlement-related administration costs, including up to $1.5 million for the cost of notice to the settling class. The company will pay up to $760,000 of the costs of attorneys representing the class members. Heartland said it could terminate the deal if costs of notice exceeded $1.5 million, or if it received more than 2,500 requests for exclusion from the settlement class."

The settlement deal includes consumers whose credit and debit cards were compromised between Dec. 6, 2007 and Dec. 31, 2008, plus consumers who have alleged that they have suffered fraud losses.

Last week, Heartland agreed to pay $3.6 million last week to settle claims with American Express Company.