UPDATE 1-Heartland Payment, Discover settle data breach claims

Wed Sep 1, 2010 6:25pm EDT

* Heartland says it's the final agreement with a card brand

* Heartland to pay $5 mln to Discover Financial

* Settlement related to cyber theft on Heartland systems

Sept 1 (Reuters) - Credit and debit card processor Heartland Payment Systems (HPY.N) agreed to pay $5 million to Discover Financial Services (DFS.N) to settle data security breach claims and said this was the final agreement with a card brand related to a cyber theft in its systems in 2008.

Cyber thieves had breached Heartland's payment systems and stolen credit card information in 2008.

The company had previously settled similar claims with Visa Inc (V.N), MasterCard Inc (MA.N) and American Express Co (AXP.N).

Heartland was one of the victims of computer hacker Albert Gonzalez, a mastermind of the biggest identity theft in U.S. history who confessed to stealing tens of millions payment card numbers from companies. [ID:nN25231733]

Shares of Heartland closed at $14.84, while shares of Discover closed at $15.16, Wednesday on the New York Stock Exchange. (Reporting by Rachel Chitra in Bangalore; Editing by Vinu Pilakkott)

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