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Comdata Reaches Agreement to Settle Class Action Litigation
Brentwood, Tenn. - January 21, 2014
Comdata Inc., a recognized leader in fleet payment solutions, announced today that it has signed a memorandum of understanding to resolve claims brought by a putative class of U.S. retail fueling merchants in the U.S. District Court for the Eastern District of Pennsylvania.
Stuart C. Harvey, Jr., Chairman, Chief Executive Officer and President of Comdata Inc. stated, “We are very pleased to have reached an agreement that directly addresses merchant issues while continuing to emphasize and ensure fair treatment at the point of sale for fleets that carry the Comdata Card. While Comdata believes the lawsuit lacked merit, we decided to resolve the lawsuit so that we can continue to focus our full attention on strengthening and growing our relationships with our merchant and fleet customers.”
Randy Morgan, Executive Vice President of Comdata’s fleet business stated, “Comdata’s number one priority is, and has always been, to serve as a trusted, independent partner for customers on both sides of fueling transactions. This settlement reflects our commitment to leadership in the industry by moving forward in a way that is fair and appropriate to both fueling merchants and the fleets that patronize them.”
Under the terms of the memorandum of understanding, which will need to be finalized in a definitive settlement agreement and approved by the Court, Comdata has agreed to make a one-time cash payment of $100 million as part of a $130 million global settlement with other defendants in the lawsuit, and to provide certain prospective relief with respect to specific provisions in its merchant agreements. This settlement will provide Comdata and affiliated companies, including its parent, Ceridian, which was also named in the lawsuit, with a broad release of claims and will limit their exposure to legal claims by merchants. Further details about the prospective relief and other settlement details will not be public until after the definitive settlement agreement is final.
The lawsuit, Marchbanks Truck Service, Inc. d/b/a Bear Mountain Truck Stop, et al. v. Comdata Network, Inc., et al., was initiated in March, 2007.
About Comdata Corporation
Comdata Corporation is a leading business-to-business provider of innovative electronic payment solutions. As an issuer and a processor, the company provides fleet, corporate payment, healthcare, virtual card, and prepaid solutions to over 30,000 customers. Comdata captures and reports detailed transaction data, giving customers unprecedented control over their expenses. In 2012, Comdata joined forces with Stored Value Solutions (SVS) to offer an expanded suite of prepaid gift card and loyalty solutions. Annually, the combined company enables over $50 billion in payment volume. Founded in 1969 and headquartered in Brentwood, Tennessee with more than 1,200 employees in the United States and Canada, Comdata and SVS are wholly-owned subsidiaries of Ceridian Corporation.