The Thursday (June 18) ruling allows the lawsuit to move forward, according to the report.
Polam FCU CEO Jennifer Audette told the publication, per the report: “Our Board of Directors and I are extremely grateful for our legal representation and encouraged by this significant first win against the ‘big guys.’”
Charles Nerko of Nerko PLLC, one of the attorneys representing the credit union, said in the report: “The legal process is a key tool credit unions can use to turn vendor frustrations into recoveries.”
Reached by PYMNTS, Fiserv declined to comment on the report.
According to the CU Today report, four other credit unions, including Self-Help Credit Union, FiCare Federal Credit Union, Educational & Governmental Employees Federal Credit Union and Midwest Family Federal Credit Union, are pursuing similar litigation against Fiserv.
In addition, Fiserv has settled similar lawsuits brought by three other credit unions, including Bessemer System Federal Credit Union, Cencap Federal Credit Union and U.S. Court House SDNY Federal Credit Union, per the report.
The CUDaily reported on the decision Monday and added that it reported in March that Polam FCU filed its lawsuit March 5, alleging that Fiserv failed to implement basic cybersecurity protections and attempted to force the credit union to buy a replacement security product while still under contract.
That report said Polam FCU is seeking damages, recovery of payments for services it alleges were deficient, a court order preventing Fiserv from imposing exit fees, and a court order requiring the company to improve safeguards for member information.
It added that Nerko PLLC was formed to represent credit unions in disputes with vendors and that Charles Nerko is representing five other credit unions in litigation against Fiserv.
PYMNTS reported in May that during the first quarter, Fiserv’s organic revenue was down 4%, with the company’s merchant solutions revenue down 1% and financial solutions down 6%. The company characterized this year as a transition period.
