Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Opt-Out plaintiffs agree to settle payment card interchange fee antitrust suit, (Jan 20, 2015)

By Linda O’Brien, J.D., LL.M.

Federal Express and eight other companies that opted out of an earlier $7.25 billion settlement agreed to settle their claims In multidistrict litigation against Visa and MasterCard and their issuing and acquiring banks for an alleged conspiracy to fix credit and debit card interchange fees paid by merchants, according to a stipulation in the federal district court in Brooklyn, New York (In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, January 16, 2015).

Hawaiian Airlines, Federal Express, Carnival, and Progressive Insurance—along with approximately 12 million merchants—filed a series of class action suits against Visa, Inc. and MasterCard International Corporation, as well as their issuing and acquiring banks, alleging violations of Section 1 of the Sherman Act. The plaintiffs asserted that the companies conspired to fix interchange fees and merchant discount fees by adopting and enforcing practices relating to payment cards that unreasonably restrained trade and caused injury to the merchants. Several merchants elected to opt out of a $7.25 billion settlement approved by the court in December 2013.

Under a proposed order, Hawaiian Airlines, JetBlue Airways, DSW, Federal Express, Southwest Airlines, Alaska Airlines, Progressive Casualty Insurance, Carnival, and O’Reilly Automotive Stores have agreed to settle their respective claims against Visa and MasterCard with prejudice, with each side bearing its own attorneys’ fees and costs. No other terms were disclosed.

Attorneys: Richard Alan Arnold and William J. Blechman (Kenny Nachwalter, P.A.) for Carnival Corporation and O’Reilly Automotive Stores, Inc. Paul E. Slater (Sperling & Slater, P.C.) for Hawaiian Airlines, Inc., JetBlue Airways Co., DSW, Inc., Federal Express Corporation, Southwest Airlines Co., Alaska Airlines, Inc., and Progressive Casualty Insurance Co. Robert C. Mason, Robert J. Vizas, and Mark R. Merley (Arnold & Porter LLP) and Richard J. Holwell, Michael S. Shuster, Demian A. Ordway, and Zachary A. Kerner (Holwell Shuster & Goldberg LLP) for Visa U.S.A. Inc., Visa Inc., and Visa International Service Association. Gary R. Carney and Kenneth A. Gallo (Paul, Weiss, Rifkind, Wharton & Garrison LLP) and Matthew Freimuth and Wesley R. Powell (Willkie Farr & Gallagher LLP) for MasterCard International Inc. and MasterCard Inc.

Companies: Hawaiian Airlines, Inc.; JetBlue Airways Co.; DSW, Inc.; Federal Express Corporation; Southwest Airlines Co.; Alaska Airlines, Inc.; Progressive Casualty Insurance Co.; Carnival Corporation; O’Reilly Automotive Stores, Inc.; Visa U.S.A. Inc.; Visa Inc.; Visa International Service Association; MasterCard International Inc.; MasterCard Inc.

News: Antitrust NewYorkNews