RushCard Settles Lawsuit Over Prepaid-Card Outage for $19,000,000

UniRush, the parent company behind the RushCard, is trying to make amends with its prepaid-card users. Last year, during a transition to a new processing system, millions of users could not access their funds, some for weeks. Customers quickly filed a lawsuit against the card, founded by Russell Simmons. On Thursday, UniRush agreed to pay…

UniRush, the parent company behind the RushCard, is trying to make amends with its prepaid-card users. Last year, during a transition to a new processing system, millions of users could not access their funds, some for weeks. Customers quickly filed a lawsuit against the card, founded by Russell Simmons. On Thursday, UniRush agreed to pay $19 million to settle the lawsuit over the outage.

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โ€œWe are pleased to have reached this preliminary settlement, which will resolve the claims of our cardholders,โ€ Rick Savard, the chief executive of UniRush, said in a statement, the New York Times reports. โ€œWe believe this settlement fairly compensates our customers who were inconvenienced.โ€

According to the settlement, 300,000 people could recoup $100-$500 for any costs they experienced while locked out of their accounts.

ย โ€œWeโ€™re very pleased with the result and the speed by which RushCard and the other defendants were able to settle this matter,โ€ John Yanchunis, the lawyer for the cardholders, said, according to the New York Times.

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