Prepaid card provider nFinanSe Inc. said Tuesday that it has filed a motion for a preliminary injunction in federal court against InComm Inc., which distributes and markets prepaid cards, in order to stop the company from operating its new Vanilla Reload Network.
The legal action stems from a lawsuit filed in the United States District Court for the Northern District of Georgia this fall that alleged InComm was attempting to fix the reload price of both nFinanSe's and its prepaid cards at a uniform $3.95 under its "Vanilla" Visa system.
The original complaint, filed at the end of October, also alleges that InComm was violating its distribution agreement with nFinanSe of Tampa, threatening to stop distributing nFinanSe's cards to certain retailers if it did not go along.
"InComm has not only caused nFinanSe to suffer lost business opportunities and exclusion from key markets," says the prepaid card company in its motion, which is cited in a press release."But it has threatened to sever the parties' entire business relationship and effectively drive nFinanSe out of business."