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, ndependent 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,
About Comdata Inc.
Comdata Inc. 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's SVS division is a global
gift card and loyalty innovator that manages over 600 million cards and
processes over 1 billion transactions from over 45 countries and in 26
currencies worldwide every year. Founded in 1969 and headquartered in
Brentwood, Tennessee with more than 1,200 employees globally, Comdata
Inc. enables over $60 billion in payment volume annually.
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