Payment processor Fiserv Inc. faces a lawsuit over allegations it misled investors over how it handled migrating merchants to Clover from its now retired Payeezy payment gateway, according to Labaton Keller Sucharow LLP, the New York City-based law firm representing the plaintiff, the City of Hollywood Police Officers’ Retirement System in Florida.
Filed Thursday, the suit claims that the Milwaukee-based company “misled investors” by failing to disclose that, because of cost issues and other problems, it was forcing Payeezy platform merchants to move to the Clover platform and that Clover’s revenue growth and gross payment volume, which is the total monetary value of transactions processed through Clover, were temporary and unsustainable because of the forced conversions. Another claim is that a number of former Payeezy merchants switched to competitors and that, as a result of this attrition, Clover’s gross payment volume was slowing.