July 19, 2012 – Crosby & Higgins LLP Lead Counsel in Action Pending in the Southern District of New York Against Numerous Merchant Services Organizations
July 19, 2012
Crosby & Higgins LLP serves as lead counsel representing two national independent sales organizations (“ISOs”) and their principal against several companies in the credit card processing industry, Business Payment Systems LLC, Outside Ventures, LLC, Second Source Funding LLC, and Tribul Merchant Services, LLC, in an action filed in the Southern District of New York arising out of a Marketing Agreement and Portfolio Purchase Agreement entered into by the parties. According to the allegations in the complaint, during the parties’ more than nine year relationship, Defendants engaged in a series of complex schemes to surreptitiously profit millions of dollars from Plaintiffs’ marketing services, including underpaying Plaintiffs’ commission by splitting the payments under the contracted rate and retaining the remaining funds for themselves, redirecting Plaintiffs’ commissions to themselves by re-registering Plaintiffs’ accounts under Defendants’ internal office codes, and by failing to supplement Plaintiffs’ residual portfolio in accordance with the parties’ agreement. The Complaint asserts claims for breach of contract, unjust enrichment, and quantum meruit, and seeks an accounting and compensatory damages for Defendants’ egregious actions in connection with this dispute. The case is pending before the Honorable Judge Marrero and is scheduled for trial early next year.