Bannister Law explores class action against Tyro

Bannister Law explores class action against Tyro

As thousands of customers of Tyro Payments (ASX: TYR) frantically send in their EFTPOS terminals rendered useless by faulty software, a legal action could now be on the cards.

Close to one in five of Tyro's customers have no functioning terminal due to what the fintech today confirmed was the result of an issue with some versions of software from its supplier Worldline.

A further 11 per cent of customers have lost connectivity across multiple terminals but still have one working.

"These numbers are being provided for transparency and we want you to know that we will not stop until we have completely resolved this issue at which point we will turn our attention to how we will make amends for this disruption, which is another frequently asked question," the company said in a statement this morning.

"Please know that all options are on the table and once we have completely resolved this issue for all our customers, we will be proactive in progressing these discussions."

It is against this backdrop that Sydney-headquartered Bannister Law is stepping up to the plate, exploring its options to support impacted customers and potentially TYR shareholders as well.

In a statement released today, the company said it was investigating claims from many businesses that have been unable to accept EFTPOS payments because of Tyro's terminal outages.

"Tyro is the largest provider of EFTPOS service other than the banks to over 32,000 Australian businesses," Bannister Law said.

"Some businesses have been left with the woefully inadequate situation of accepting cash payments only, losing essential revenue. In this difficult time, they require every cent to survive and pay their overheads.

"Bannister Law is seeking registrant business owners and operators that have incurred loss through them being unable to use the terminal supplied to them to accept payments in their businesses and encourage them to enter their information so that we may better understand what has occurred in an effort to assist recover any losses."

Bannister Law is also considering at any potential shareholder claims against the publicly listed company following its share price fall when some terminals became "bricked" from a "configuration issue" over the last two weeks. TYR shares have fallen by more than 15 per cent from their $3.34 per share closing price on 5 January.

In its statement, the law firm also drew attention to two claims from Tyro that formed part of the basis for its investigation:

"We connect simply with your existing systems and Xero Software but also offer a world of possibility by connecting customers with innovative software and apps that help build business."

"Our Smart technologies are easy to use and designed to save our customers time and money."

Never miss a news update, subscribe here. Follow us on LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

Unpacking equity: Finding your funding fit
Partner Content
Armed with a growing business and a great opportunity, a business owner’s next challe...
Australian Business Growth Fund

Related Stories

Tyro EFTPOS outage will stretch into next week for some merchants

Tyro EFTPOS outage will stretch into next week for some merchants

Payments facilitator Tyro (ASX: TYR) says an outage of its EFTPOS...

Tyro EFTPOS outage sparks customer rage online

Tyro EFTPOS outage sparks customer rage online

Update 13 Jan 2021: Tyro EFTPOS outage will stretch into nex...