News

PRE Solutions files suit against Dynamic for contract breach

May 15, 2005

ATLANTA - PRE Solutions Inc., which provides prepaid transaction-processing solutions for retailers, announced May 16 in a news release that it has filed a lawsuit against Des Moines, Iowa-based Dynamic Telecard LLC for breach of contract.

Dynamic operates POS terminals that consumers use to buy wireless minutes and other prepaid services.

Jonathan Coe of PRE Solutions would not disclose specifics surrounding the suit. He did say, however, that the suit's allegations stem from the breach of a December 2002 contract PRE signed with Dynamic for transaction processing.

Coe would not discuss the length of the contract.

The suit claims that Dynamic did not honor its commitment to use PRE's systems to process merchants' prepaid POS and debit transactions. According to the release, "Dynamic has distribution agreements and failed to uphold its agreement not to solicit PRE's customers."

PRE, a subsidiary of PRE Holdings Inc., which filed the suit against Dynamic in U.S. District Court, is seeking an injunction to stop Dynamic from soliciting its customers.

Dynamic was purchased by Leawood, Kan.-based Euronet Worldwide Inc. in March. Euronet Worldwide is the largest processor of prepaid wireless minutes in Europe and Australia. It also operates a global network of nearly 6,000 ATMs, and offers related EFT services, including ATM management, credit and debit card systems and Internet and wireless banking.