Heartland reaches settlement with American Express after data breach

2009-12-22

Heartland Payment Systems has announced it has reached a settlement with American Express.

It was over the data breach that hit Heartland in 2008 and it will pay American Express a total of $3.6 million (£2.24 million) under the agreement.

"We are pleased to have reached an equitable settlement with American Express. This settlement marks the first agreement with a card brand related to the intrusion," said Bob Carr, Heartland's chairman and chief executive officer.

Following this, Heartland announced that it will pay a minimum of $1 million (£622,820) and up to a maximum of $2.4 million (£1.49 million) to class members who submit valid claims for losses as a result of the data breach.

It will settle the consumer cardholder class actions consolidated in the United States District Court for the Southern District of Texas and will pay all costs related to the administration of the settlement.

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