NEW HAVEN, Conn.–Cencap Federal Credit Union has reached an agreement to settle a lawsuit it filed against Fiserv alleging there were “significant deficiencies” in the company’s data security practices.
The $33.3-million Cencap FCU was among the first CUs to file such a lawsuit in June of 2025; approximately a half-dozen other CUs have since filed similar suits making similar allegations, as the CU Daily has been reporting.
“Cencap and Fiserv have amicably resolved their dispute on a confidential basis,” said Charles Nerko, managing partner of NERKO, PLLC, who has been counsel or co-counsel in all of the suits between the credit unions and Fiserv. “Cencap is concluding its relationship with Fiserv and will be transitioning to an alternative core processor.”
Terms of the settlement were not released.
As the CU Daily originally reported, the complaint, filed in the United States District Court for the District of Connecticut, alleged Fiserv’s Virtual Branch online banking platform and the Client360 portal used by credit unions to open support tickets with Fiserv lack basic security controls that make them vulnerable to hackers.
Suit Filed This Week
Another lawsuit against Fiserv making similar allegations was filed this week by the $56-million Educational & Governmental Employees Federal Credit Union, which is alleging Fiserv and its subsidiary, Fiserv Solutions LLC, breached contractual obligations and engaged in fraud by providing inadequate security controls while claiming compliance with industry standards.
Nerko is co-counsel in that case. Representing the credit union in the case is lead counsel Lori Feldman of Hecht Partners.
Fiserv Responds
In a statement to the CU Daily, Fiserv said in response to E&GEFCU suit, “The claims against Fiserv fundamentally mischaracterize our Credit Union business and our longstanding commitment to protecting our clients. Our policies and practices are designed to deliver effective information security programs tailored to each client’s business, member preferences, and other needs. The features of these programs are detailed in comprehensive written agreements between Fiserv and its clients, something that these claims ignore. We look forward to successfully defending ourselves in court.”
