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Number of Opt-Outs in $7.2 Bln Credit Card Settlement Made Public

June 17, 2013

Approximately 8,000 merchants out of a proposed class of 8 million have opted out of a $7.2 billion class-action settlement related to a reported conspiracy by Visa and MasterCard to raise credit card fees.

Approximately 8,000 merchants out of a proposed class of 8 million have opted out of a $7.2 billion class-action settlement related to a reported conspiracy by Visa and MasterCard to raise credit card fees. This number of merchants represents less than 1 percent of potential class members, and corresponds with the predictions of Visa and MasterCard. However, the number could have an impact on U.S. District Judge John Gleeson as he considers the fairness of the settlement at a hearing in September. The settlement was agreed to in 2012, but has been criticized by major retailers and their lawyers who say the monetary amount is inadequate and that its excessively broad litigation releases could protect Visa and MasterCard from future lawsuits over antitrust violations. Merchants that are dissatisfied with the settlement were given to May 28 to opt out. Under the settlement, Visa and MasterCard have the option of walking away from the settlement if the opt-out plaintiffs comprise more than 25 percent of total credit card transactions in the United States. The names of the 7,807 opt-outs listed by Epiq Class Action & Claims Solutions include such retailers as Wal-Mart, Target, Office Depot, and JC Penney.

Author: Thomson Reuters News & Insight (06/14/2013) Longstreth, Andrew

Source: "Number of Opt-Outs in $7.2 Bln Credit Card Settlement Made Public"

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