Fiserv Lawsuit: Securities Fraud, Derivative Suits & FCA Settlement

The Fiserv lawsuit landscape in 2025 and 2026 spans four main fronts: two now-consolidated securities fraud class actions in the Southern District of New York, a set of shareholder derivative suits, at least six credit union cybersecurity cases, and a nearly $9 million False Claims Act settlement with the federal government. The SEC and the U.S. Attorney’s Office for the Southern District of New York are also investigating the company’s 2025 earnings guidance.

The Securities Fraud Class Actions

Two shareholder class actions accuse Fiserv and several executives of misleading investors. Both were consolidated in the Southern District of New York after a Wisconsin federal judge ordered the transfer on April 28, 2026.{{¹}}

The Clover and Payeezy Case

The first case, City of Hollywood Police Officers’ Retirement System v. Fiserv, Inc. (No. 1:25-cv-06094), was filed on July 24, 2025. It covers investors who bought Fiserv stock between July 24, 2024 and July 22, 2025 and names former CEO Frank Bisignano, current CEO Michael Lyons, former CFO Robert Hau, and Chief Accounting Officer Kenneth Best.{{²}}

The complaint alleges that Fiserv inflated growth figures for its Clover point-of-sale platform by forcibly migrating as many as 200,000 merchant locations from its legacy Payeezy system to Clover between late 2023 and the first half of 2024. Executives publicly said roughly 90% of Clover’s revenue growth came from new merchant acquisitions when, according to plaintiffs, forced conversions were doing much of that work.{{³}} Many migrated merchants were allegedly poor fits for Clover and left for competitors like Square and Toast, producing churn that was not disclosed.{{⁴}}

Clover’s gross payment volume growth dropped to 8% in the first quarter of 2025 from 14% the prior quarter. The stock fell roughly 18.5% on April 24, 2025, then 16.2% on May 15 and 13.9% on July 23 as further disclosures came out.{{⁵}} Fiserv has disputed the allegations and said it will defend itself vigorously.{{³}}

The 2025 Earnings Guidance Case

The second class action, initially filed as Cypanga Sicav SIF v. Fiserv, Inc. (No. 2:25-cv-01716) in the Eastern District of Wisconsin, covers a shorter class period: July 23 through October 29, 2025.{{⁶}} It focuses on revised guidance the company issued in July 2025, when Fiserv told investors that its initiatives were “fundamentally sound” and that a “big ramp in growth” was expected in the second half of the year.{{⁷}}

On October 29, 2025, Fiserv reported adjusted earnings of $2.04 per share on roughly $4.9 billion in revenue, below analyst estimates of $2.64 per share and about $5.4 billion. The company cut its full-year adjusted earnings forecast from $10.15–$10.30 per share to $8.50–$8.60 and reduced its organic revenue growth target from about 10% to 3.5%–4%.{{⁸}}{{⁹}} CEO Mike Lyons said “our current performance is not where we want it to be nor where our stakeholders expect it to be” and described earlier growth assumptions as “objectively difficult to achieve.”{{¹⁰}}

The stock lost more than 40% of its value in a single day, falling from $126.17 to $70.60, a $55.57 drop.{{⁷}} The company also announced a new CFO, Paul Todd, new co-presidents, and three new board members.{{⁸}}

Where the Cases Stand Now

The Wisconsin cases were consolidated in February 2026. Lead plaintiffs from the New York action then moved to transfer them, and Judge J.P. Stadtmueller in Milwaukee granted the transfer on April 28, 2026, saying combining the claims in New York was “the optimal way to handle all of the plaintiffs’ assorted allegations against Fiserv and its executives” and would avoid “duplication of efforts and inconsistent rulings.” The Southern District of New York accepted the case on May 6, 2026.{{¹}} As of mid-2026, Fiserv has not filed a responsive pleading in either action, and discovery has not begun.{{²}}

Derivative Suits and Government Investigations

Between December 2025 and February 2026, three shareholder derivative complaints were filed in the Eastern District of Wisconsin by plaintiffs Richard Martin, Nathan Silva, and Gary Peterson. Brought on behalf of the corporation against its own officers and directors, they name Bisignano, Lyons, and other current and former officers and directors, alleging breach of fiduciary duty, Securities Exchange Act violations, and insider trading at artificially inflated prices. Martin filed an amended complaint on December 30, 2025.{{²}}

Since November 2025, Fiserv has been responding to information requests from the SEC’s Enforcement Division and the U.S. Attorney’s Office for the Southern District of New York. Both inquiries concern the company’s 2025 earnings guidance. Fiserv has said it is cooperating. No charges or formal enforcement actions have been announced.{{²}}

Frank Bisignano, CEO from 2020 until May 2025, resigned after Senate confirmation as Commissioner of the Social Security Administration on May 6, 2025.{{}} He is a named defendant in both the SDNY securities action and the derivative suits. In November 2025, Senators Elizabeth Warren and Ron Wyden sent a letter to Lyons linking the company’s stock declines to Bisignano’s tenure, noting that Bisignano and his wife sold $558 million in Fiserv stock in May, June, and July 2025. Those sales were required by an ethics agreement tied to his government confirmation.{{¹¹}}

Credit Union Cybersecurity Lawsuits

On a separate track, credit unions are suing Fiserv over what they describe as security deficiencies in its online banking and data platforms, particularly around multi-factor authentication. At least six have sued, with four filing between late 2025 and early 2026.

CenCap Federal Credit Union (Connecticut) sued in June 2025 over the “Virtual Branch” online banking platform and “Client360” portal. The parties reached a confidential settlement in March 2026, and CenCap is moving to a new core processor.{{}}¹²
Self-Help Credit Union (North Carolina) filed in the Middle District of North Carolina on December 4, 2025 (No. 1:25-cv-01112). Judge Thomas D. Schroeder denied its request for a temporary restraining order in January 2026. Fiserv’s motion to dismiss is pending.{{}}¹³
FiCare Federal Credit Union (Florida) filed in the Middle District of Florida on January 27, 2026 (No. 8:26-cv-00231), alleging that hackers repeatedly breached Fiserv’s “Virtual Branch Next” platform starting in 2024, leading to account takeovers and the theft of hundreds of thousands of dollars. FiCare also says Fiserv tried to charge it for a security upgrade after the breaches.{{}} Fiserv has moved to dismiss, arguing its contract does not require the specific authentication measures the credit union demands.{{}}¹⁴¹⁵
POLAM Federal Credit Union (California) filed in the Central District of California on March 5, 2026 (No. 2:2026cv02352). POLAM alleges Fiserv failed to implement proper multi-factor authentication and that the Client360 platform relied on an email-delivered passcode rather than genuine two-factor security. Fiserv moved to dismiss on May 1, 2026.{{}}¹⁶
Educational & Governmental Employees FCU filed on March 24, 2026, alleging inadequate transaction safeguards, corrupted books and records, and weak or missing multi-factor authentication on some systems.{{}}¹⁵

Two earlier disputes were resolved before the current wave. Bessmer Systems Federal Credit Union settled in 2024, and U.S. Court House SDNY Federal Credit Union settled in 2023.{{¹⁵}} Fiserv says the credit unions mischaracterize its business and that its security programs are tailored to individual client agreements, which do not obligate specific types of multi-factor authentication.

The False Claims Act Settlement

On November 13, 2025, Fiserv announced the resolution of a separate federal case, United States ex rel. Deborah Lynn Getchman v. Fiserv Solutions, LLC and Fiserv, Inc. (No. 4:21-cv-00951, Eastern District of Missouri). Brought by a former employee under the False Claims Act’s whistleblower provisions, the case alleged that Fiserv’s facility in Hazlewood, Missouri failed to comply with the U.S. Postal Service’s “Move Update” standard for maintaining accurate bulk-mailing address lists and thereby obtained postage discounts it was not entitled to.{{¹⁷}}

Fiserv agreed to pay $8,994,221, of which $5,032,525 was designated as restitution to the Postal Service. Whistleblower Deborah Lynn Getchman received $1,596,474.{{¹⁷}} Fiserv called the matter a “legacy” issue and said it valued its relationship with the Postal Service.{{¹⁸}}

What to Watch Next

The consolidated securities case in the Southern District of New York is the largest active exposure and has not yet reached a responsive pleading or discovery. The parallel SEC and U.S. Attorney investigations could develop independently of the shareholder claims, though no enforcement action has been announced. Among the credit union cases, motions to dismiss are pending in the Self-Help, FiCare, and POLAM actions, and the outcome of those rulings will shape whether the broader group moves toward discovery or settlement on terms similar to CenCap’s.

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Payments Dive. Judge Combines Fiserv Lawsuits
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SEC. Fiserv Inc. Legal Proceedings
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Payments Dive. Fiserv Sued Over Clover Migration
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E1.nmcdn.io. City of Hollywood Police Officers’ Retirement System v. Fiserv, Inc. Complaint
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Digital Transactions. Fiserv Faces a Suit Over Claims It Misled Investors on a Merchant Migration to Clover
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PR Newswire. Fiserv Inc. Faces Securities Class Action Amid Abysmal Q3 2025 Results
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Berger Montague. Fiserv Securities Fraud Investigation
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CNBC. Fiserv Stock Guidance Earnings
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Investopedia. Fiserv Shares Plunge After Weak Earnings, Leadership Overhaul
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Forbes. The Unspoken Story Behind Fiserv’s Stock Price Decline
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Urban Milwaukee. Democratic Senators Raise Concerns About Former Fiserv CEO
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The CU Daily. CU Settles Data Security Case Against Fiserv, Will Move to New Processor
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CourtListener. Self-Help Credit Union v. Fiserv Solutions, LLC
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Banking Dive. FiCare Florida Credit Union Sues Fiserv Alleging Lax Cybersecurity
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CU Times. List of CUs Suing Fiserv for Alleged Security Lapses Grows
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Justia. Polam Federal Credit Union v. Fiserv Solutions, LLC et al
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The Federal News Wire. Fiserv Settles With U.S., Agrees to Pay Nearly $9 Million Over Postal Discount Allegations
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Fiserv. Fiserv Announces Resolution of False Claims Act Lawsuit