PORTAGE, Ind. — Another credit union has filed a lawsuit against Fiserv over alleged unaddressed security risks.
The $39-million Midwest Family Federal Credit Union has sued Fiserv in U.S. District Court for the Northern District of Indiana, alleging the financial technology provider breached contractual obligations and misrepresented the cybersecurity protections surrounding systems used by the credit union, exposing operations and member information to unauthorized access risks.
The complaint, filed May 21, alleges the parties’ master agreement included commitments related to the security, reliability and operation of technology services provided to the credit union. Midwest Family FCU contends it relied on Fiserv’s representations regarding its cybersecurity environment and alleges those representations proved inaccurate.
Representing Midwest Family Federal Credit Union is attorney Charles J. Nerko, who has represented credit unions in prior disputes involving Fiserv and cybersecurity-related claims.
Deficiencies Alleged
According to the complaint, Midwest Family FCU alleges deficiencies in Fiserv’s security controls and practices created conditions under which systems and member information could become vulnerable to unauthorized access. The credit union further alleges the company failed to satisfy obligations contained in the governing agreement and seeks damages and related relief.
The lawsuit includes multiple legal counts tied to those allegations, including:
- Breach of contract — alleging Fiserv failed to perform obligations required under the parties’ master agreement, including obligations tied to the delivery and operation of contracted services.
- Fraudulent or negligent misrepresentation-related allegations — asserting the credit union relied on statements regarding cybersecurity controls, security practices and platform protections when entering and continuing the relationship.
- Claims tied to cybersecurity and operational assurances — alleging the company’s practices did not align with representations made to the credit union and resulted in exposure to heightened security and business risks.
The complaint seeks monetary damages and other relief to be determined by the court. The filing also indicates certain exhibits associated with the complaint were submitted under seal.
