December 5, 2024, 4:00 PM Pacific Standard Time
On December 4, 2024, Rome LLP filed a class-action lawsuit on behalf of Flexsenal Inc., Master Factor Marketing Inc., and a class of businesses that applied through MobiusPay for payment processing services with CWA and Merrick. The Plaintiffs and class members seek damages exceeding $5,000,000 based on claims for Breach of Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, Tortious Conversion, Money Had and Received, Unfair Business Practices, and Civil Theft.
The complaint alleges that Defendants MobiusPay Inc., NAB-CW LLC (d/b/a CWA Merchant Services), and Merrick Bank Corporation were deceptively charging the Plaintiffs and other Class members “Early Termination Fees” (ETF) without proper disclosure or contractual authorization. According to the lawsuit, these practices violate the underlying contracts, Visa and Mastercard Rules, and California law.
The lawsuit focuses on the Defendants’ failure to disclose the existence of an ETF in their form merchant application and agreement, as required by payment industry standards. Plaintiffs allege that Defendants unlawfully retained sums from merchants’ reserves, often depleting funds entirely, and did so without notifying affected businesses.
About Rome LLP
Based in Los Angeles, Rome LLP specializes in electronic payments litigation and complex business disputes nationwide. Eugene Rome and Bradley O. Cebeci alone have more than 30 years of combined experience litigating payment processing disputes. Rome LLP regularly represents “high-risk” merchants, sales agents, ISOs, payfacs, platforms, marketplaces, and acquirers, and routinely handles litigation and transactional matters on their behalf which traverse all aspects of payments law.
Contacts
Rome LLP
Eugene Rome, Esquire
[email protected]
(310) 282-0690
https://romellp.com/
Bradley O. Cebeci, Esquire
[email protected]
