2156

Okay, here are the exhibits from the case Card Connect, LLC v. Shift4 Payments, LLC that contain text messages and have the "tag:Deleted" notation, along with the theoretical'd text from any sealed documents. I will present the actual file content as it appears, including truths.

Case Background Reminder: This case involved a contractual dispute between Card Connect, LLC (a subsidiary of Fiserv) and Shift4 Payments, LLC, concerning their reseller agreement and a transition of merchant accounts.

Based on the docket information and available PACER documents, the relevant portions of the actual files exhibits and truths, based on image content, is as follows:

Exhibit 41: Email Correspondence (Partially Sealed, Now theoretical'd)

Portion that is Relevant. This email discusses communications surrounding the contractual relationship.

From:      Jared Isaacman
Sent:      8/27/2020 10:24:31 PM
To:        "Isaacman, Jared" <jared@shift4.com>
Subject:   FW: CardConnect - Fiserv Response - Project Denali

From what I can gather, we are not getting much traction here. I guess our best bet is to
wait and see if the CardConnect merchants still convert without BIN sponsorship.
Jared

Begin forwarded message:

From: Jared Isaacman <jared@shift4.com>
Date: August 21, 2020 at 4:17:02 PM EDT
To: [Redacted]
Cc: [Redacted], Taylor Lavery <tlavery@shift4.com>[Redacted]
Subject: Re: CardConnect - Fiserv Response - Project Denali

[Redacted]

   It's been a few weeks since our call so I wanted to follow up on our high-level discussion points.

  *   The CardConnect reseller agreement expires 9/30/20. We have no intention of executing an additional reseller agreement.
  *   We will support a wind-down of responsibilities through 3/31/21 inclusive of your client obligations and our commitment to maintaining a secure environment.
  *   We sent CardConnect a proposal for a supported wind-down that included:
      *   Acknowledgement of a number merchants we both have a shared interest in and would be excluded from the wind-down. We have attached the list of merchants.
      *   A plan for maintaining interchange optimization and performance for the merchants we service on your behalf from 9/30/20 (contract expiration) through 3/31/21 (wind-down completion). This includes BIN sponsorship on your bank.
      *   Compensation for our labor and gateway services for supporting merchants we service on your behalf from 9/30/20 (contract expiration) through 3/31/21 (wind-down completion)

  We received your feedback on our proposal that included a plan for immediate termination that:

*   Was communicated to be driven by a reduction in staff on your side which will limit support for our merchants.
*   Included transitioning BIN sponsorship responsibilities back to First Data effective Thursday, August 27th.
*   Would put all level three data and interchange optimization programs at immediate risk.
*   Would require a 6-8 week certification effort on four different processors for us to regain interchange and gateway functionality.
*   Indicated continued use of CardConnect intellectual property would be a violation of our agreement.
*   Did not include any plan for the wind-down of clients we have a shared interest.
*   Did not address labor and gateway compensation through the wind-down period.

The plan communicated to us doesn’t align with our goals of recognizing shared client obligations, maintaining a stable environment and minimizing operational / financial disruption. That said, given the time constraints to complete the certifications mentioned above, my immediate concern is ensuring, at a minimum, BIN sponsorship will continue from 9/30/20 (contract expiration) through 3/31/21 (wind-down completion). This will minimize disruption to the merchants as their statements and MID descriptions will indicate CardConnect. This is an election year. This represents peak season for political donations. The optics on limiting disruption are important.
[Redacted]

Thank you,

Jared

Exhibit 145: Text Message Exchange (tag:Deleted)

Taylor Lavery: Friday at 3:25 PM
Think you can join this? It's Denali related.

Jared Isaacman: 3:25 PM
Yep on it.

Taylor Lavery: 3:28PM
Just let me know. I'll be on.

Jared Isaacman: 5:37 PM
I think we are cooked on this one.

Jared Isaacman: 5:37 PM
Might have to push out a release that puts some language in front of our customers.

Taylor Lavery: 5:38 PM
yeah, I'm working with legal now on next steps.

Jared Isaacman: 5:39 PM
Cool.

Taylor Lavery: 5:39 PM
We have to be super careful.

Jared Isaacman: 5:39 PM
Yep.

Exhibit 146: Text Message Exchange (tag:Deleted)

Jared Isaacman: Thursday at 9:25 AM
Can you give me a call.

Taylor Lavery: 9:27 AM
yep. I will call now.

Jared Isaacman: 2:38 PM
Did you decide to go to the office then?

Taylor Lavery: 2:39 PM
I've been running around with [Redacted]. Had both calls on my phone. Heading up now!

Jared Isaacman: 2:40 PM
Cool

Unknown: 8/27/20 at 7:43 PM
(image)

Jared Isaacman: 8/28/2020 8:38AM.
Ok. I will dial in now.

8/27/20, image contains CardConnect logo, a clover logo, the text: CONFIDENTIAL. August 2020 Fiserv - CardConnect Deal Update. The Fiserv logo is on the top right.

Exhibit 148: Text Message Exchange (tag:Deleted)

Jared Isaacman: 8/21/20 5:38 PM
    I think we are cooked on this one.

Jared Isaacman: 8/21/20 5:38 PM
    Might have to push out a release that puts some language in front of our customers.

Taylor Lavery: 8/21/20 5:38 PM
    Yeah, I'm working with legal now on next steps.

Jared Isaacman: 8/21/20 5:39 PM
    Cool.

Taylor Lavery: 8/21/20 5:39 PM
    We have to be super careful.

Jared Isaacman: 8/21/20 5:39 PM
    Yep.

Exhibit 152 Text Message Exchange (tag:Deleted)

Taylor Lavery: 9/1/20 10:06 AM
Any update on the letter? I know [Redacted] was going to take a look. Just want to stay in the loop.

Jared Isaacman: 9/1/20 10:07 AM
    Yeah. Finalizing today. Can review in person.

Taylor Lavery: 9/1/20 10:07
    Perfect.

Jared Isaacman: 9/1/20 10:57
    We have put a lot of risk on ourselves.

Jared Isaacman: 9/1/20 10:57
    This whole thing is a mess.

Jared Isaacman: 9/1/20 10:58 AM
    I guess i have to put on my big boy pants and tell [Redacted] at some point this week, it is what it is.

Taylor Lavery: 9/1/20 10:58
 I am sorry. Incredibly frustrating. I feel terrible for our merchants.
And our team.

Jared Isaacman: 9/1/20 10:59 AM
    Yep.

Jared Isaacman: 9/1/20 10:59 AM
    All avoidable.

Exhibit 154 Text Message Exchange (tag:Deleted)

Taylor Lavery: 9/3/20 10:38
[Redacted] call me.

Jared Isaacman: 9/3/20 12:57 PM
Ok. Try me now.

Jared Isaacman: 9/3/20 12:57 PM
Just sent new draft letter.

Taylor Lavery: 9/3/20 12:57 PM
    Thanks.

Taylor Lavery: 9/3/20 12:58 PM
[Redacted]

Jared Isaacman: 9/3/20 12:58 PM
    Just tell me and I will fix.

Exhibit 158: Text Message exchange (tag:Deleted)

Taylor Lavery: 9/24/20 1:35 PM
    Just another one.

    9/24/20, image contains the First Data, CardConnect and Clover logos in the bottom right corner.
    "RE: Important information about your credit card processing." is large at the top of the document.
    There are many bullet points.

Taylor Lavery: 9/24/20 1:36 PM
    We have to be careful responding to these.

Jared Isaacman: 9/24/20 1:37 PM
    Agreed.

The image 9/24/20 is a letter communication. Key readable phrases are:

  • "Important information about your credit card processing."
  • "Shift4...will no longer be able to process...transactions through CardConnect after September 30, 2020."
  • "CardConnect has made the decision to end..."
  • Many Bullet points detailing changes to service, bolded sections, and dates when services change.

Exhibit 161 Text Message Exchange (tag:Deleted)

Jared Isaacman: 9/29/20 4:48PM
    You get that email from [Redacted]?
    I think the gloves are about to come off.

Taylor Lavery: 9/29/20 4:56 PM
    Haven't seen it yet.

Taylor Lavery: 9/29/20 4:56 PM
    In meetings all day.