The fallout continues following the large-scale compromise of financial account information at Heartland Payment Systems. Last week, Heartland announced in its 8-K SEC filing that it had reached a settlement with Visa and Visa payment card-issuing banks affected by the breach. Under the settlement, Heartland will pay a maximum of $60 million to those entities and to settle fines previously imposed on Heartland by Visa.
The breach was announced by Heartland last January and was reportedly the largest payment card breach to date, involving the compromise of up to 100 million payment cards from more than 650 issuing banks.
The settlement is the latest of several settlements reached by Heartland following the approximately 27 class action lawsuits filed against the company following the breach. In December of last year, Heartland filed a proposed settlement of approximately $4 million to settle the consumer class action suits. At the same time, Heartland also agreed to pay American Express approximately $3.5 million for damages related to the breach.
Heartland's January 7, 2010 SEC 8-K filing in which it announced and described the Visa settlement is available here: http://op.bna.com/pl.nsf/id/dapn-7zhkh5/$File/Heart.pdf.