Core Viewpoint - Self-Help Credit Union has filed a lawsuit against Fiserv, alleging that the company provided insecure account processing systems and demanded exorbitant termination fees when the credit union attempted to leave [1][2]. Group 1: Allegations Against Fiserv - The lawsuit claims that Fiserv failed to protect the credit union's member data with adequate safeguards, violating their master agreement [2][5]. - Self-Help alleges that Fiserv used weaker security measures for client data, such as email passcode challenges, instead of the robust multi-factor authentication (MFA) it employs for its own data [3][4]. - The complaint states that on at least one system, Fiserv required no MFA at all, which Self-Help argues is a violation of the agreement that mandates equal care in data protection [5][6]. Group 2: Security and Compliance Issues - The lawsuit cites that Fiserv provided a "fraudulent" compliance package that misrepresented its adherence to regulatory standards, claiming its policies were based on NIST standards while relying on less secure email passcodes [6][7]. - Self-Help is seeking a court order to void millions in early termination fees, arguing they should not pay to exit a system that violates security standards [9][10]. Group 3: Financial and Operational Context - Fiserv is currently facing multiple challenges, including shareholder lawsuits, executive turnover, and a significant drop in stock price following a disappointing earnings report [12][13]. - The company reported third-quarter revenue of $4.92 billion, missing analyst estimates of $5.36 billion, and subsequently reduced its full-year organic revenue growth guidance from approximately 10% to a range of 3.5% to 4% [13][14]. - Following these developments, Fiserv's stock price fell nearly 44% and then an additional 7.6% the next day [13]. Group 4: Leadership Changes and Strategic Shifts - Fiserv is undergoing a leadership overhaul, with a new CEO, Michael Lyons, taking over in May 2025, and further executive changes announced after the poor earnings results [17]. - The company has initiated a restructuring plan called "One Fiserv" and is moving its stock listing from the New York Stock Exchange to Nasdaq [18]. Group 5: Service Reliability Concerns - Fiserv has faced scrutiny over service reliability, highlighted by a May 2025 outage that disrupted services for multiple financial institutions, including the peer-to-peer payment platform Zelle [19][20].
North Carolina credit union sues Fiserv over 'insecure' systems