Devine Goodman, in partnership with California antitrust law firm Robbins Geller Rudman & Dowd, has brought the first-in-the-nation federal class action lawsuit against the four largest U.S. credit card companies and some of the country’s biggest banks for conspiring to shift the responsibility for billions of dollars in fraudulent credit card charges away from those financial giants and onto merchants.
Lead by Miami merchants Milam’s Markets and Grove Liquors, this lawsuit aims to hold the credit card giants accountable for imposing on millions of American merchants a so-called “Liability Shift.” Before October 1 of last year – a date that the Defendants arbitrarily selected – chargebacks for fraudulent charges were borne by the banks and card companies. But after October 1 of last year, many of those chargebacks are now being imposed on American merchants, and there wasn’t a thing they could do to stop it, even when they bought the expensive equipment needed to process the new so-called “EMV chip cards,” which contain an embedded microprocessor chip.
Merchants haven’t been able to avoid the huge impact of the Liability Shift because the new processing equipment isn’t any good until it’s “certified” by the Defendants. But the Defendants aren’t getting the job done, and aren’t in any hurry to do so, since they are the very people who benefit from a delay in certifying the system. Worse than that, the lawsuit alleges, Defendants knew that most merchants couldn’t be ready on time and went ahead with the Liability Shift anyway.
You can learn more about the suit, read news articles about it, and find out how you can be involved at www.chipcardlitigation.com.