NERA Economist's Role in Visa USA Inc. v. First Data Corp., Inc.

The Situation

In 2002, San Francisco-based Visa USA sued First Data over a business initiative it claimed was designed to bypass Visa rules on the processing of Visa-related transactions. The lawsuit accused First Data of trademark infringement, dilution, and other breach-of-contract claims.

NERA's Role

NERA Senior Vice President Dr. Alan Cox served as Visa's damages expert. On 2 June 2005, Dr. Cox issued an Expert Rebuttal Report in which he prepared a rebuttal analysis of First Data's estimate of damages. In his rebuttal, Dr. Cox undertook his own independent calculation of the amount of potential damages. Dr. Cox also provided testimony in the matter in his deposition.

The Result

On 5 July 2006, Visa and First Data agreed to settle their dispute, though specific terms of the settlement were not disclosed. The companies said that First Data would transfer existing private arrangements between itself and Visa member financial institutions onto VisaNet, a processing system. Visa will provide financial support to First Data, a Greenwood Village-based processor of electronic payments.