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.
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