Page 10 - GS140101
P. 10
News
Class-action In April 2013, Gleeson even threatened to hold six national
interchange trade associations in contempt of court for disseminating
what the judge characterized as misleading information
about the settlement via websites. Gleeson said the
fee settlement misinformation campaigns arose from "their zeal to
drum up objections and opt-outs by merchants around
the country." He noted that in the arena of class action
approved settlements, "this one has been anything but typical."
For and against
t last, the controversial and long disputed Reactions to the settlement's approval were predictable.
$7.25 billion settlement of the class-action The law firm of Robins, Kaplan, Miller & Ciresi LLP,
lawsuit brought by retailers against Visa Inc. which filed the initial class action lawsuit in 2005,
A and MasterCard Worldwide over interchange endorsed the settlement. K. Craig Wildfang, partner at
fees was approved. the firm and co-lead counsel for the retailers, said he
looks forward to "getting the funds into the hands of the
members of the class."
The Dec. 13, 2013, order of
Judge John Gleeson of the The Electronic Payments
United States District Court Coalition, which represents
Eastern District of New York Gleeson said his the card brands' interests, also
paves the way for merchants expressed satisfaction with the
large and small to receive decision to approve settlement. "The long political
compensation for allegedly conflict over interchange fees
excessive electronic transaction the settlement was is finally over, settled by a
processing fees imposed by the well-established legal process,
card brands over an eight-year strengthened by "the which brought together
period. retailers and the card industry
relatively small number
In his memorandum and for a negotiated resolution,"
the EPC said. "After years
order, Gleeson found that the of opt-outs and absence of mediation, dozens of
settlement plan was both fair meetings, and millions of
and reasonable. The claim of objections from class pages of evidence, the parties
administrator will now begin members" to it. involved have willingly
distributing funds to some 8 agreed to settle their dispute."
million U.S. merchants from
two accounts - the $6.05 billion However, such was not the
Cash Settlement Fund and the verdict of the National Retail
estimated $1.2 billion Interchange Fund. Federation, the largest U.S. retailers' association. "We
are very disappointed that this deeply flawed settlement
For more details on the settlement, see "The $7.25 billion has been approved," said NRF Senior Vice President and
settlement proposal: What you need to know," The Green General Counsel Mallory Duncan.
Sheet, April 22, 2013, issue 13:04:02.
He added that the settlement "permanently ties the
Gleeson said only minor modifications would be made hands of thousands of businesses who wanted nothing
to the settlement and that a status conference regarding to do with this misguided case."
next steps would be held in his courtroom on Jan. 10,
2014. In addition, Duncan pointed out that "swipe fees cost
merchants and their customers an estimated $30 billion a
The settlement, which was initially reached in July year and have tripled over the past decade." He noted that
2013, resolves, for now, a legal battle over interchange the NRF is reviewing the ruling and "will take whatever
and card brand rules that began in 2005. As outlined by steps are necessary to protect the rights of merchants
Gleeson, in that time both Visa and MasterCard have and safeguard the pocketbooks of their customers."
gone public and the Durbin Amendment to the Dodd-
Frank Act (which regulated debit card interchange) was
implemented. Along the way, proponents and opponents Back to business
of the settlement routinely slung accusations at one
another. Final arguments for and against the settlement were
heard by the judge in a contentious Sept. 12, 2013, hearing.
10
Class-action In April 2013, Gleeson even threatened to hold six national
interchange trade associations in contempt of court for disseminating
what the judge characterized as misleading information
about the settlement via websites. Gleeson said the
fee settlement misinformation campaigns arose from "their zeal to
drum up objections and opt-outs by merchants around
the country." He noted that in the arena of class action
approved settlements, "this one has been anything but typical."
For and against
t last, the controversial and long disputed Reactions to the settlement's approval were predictable.
$7.25 billion settlement of the class-action The law firm of Robins, Kaplan, Miller & Ciresi LLP,
lawsuit brought by retailers against Visa Inc. which filed the initial class action lawsuit in 2005,
A and MasterCard Worldwide over interchange endorsed the settlement. K. Craig Wildfang, partner at
fees was approved. the firm and co-lead counsel for the retailers, said he
looks forward to "getting the funds into the hands of the
members of the class."
The Dec. 13, 2013, order of
Judge John Gleeson of the The Electronic Payments
United States District Court Coalition, which represents
Eastern District of New York Gleeson said his the card brands' interests, also
paves the way for merchants expressed satisfaction with the
large and small to receive decision to approve settlement. "The long political
compensation for allegedly conflict over interchange fees
excessive electronic transaction the settlement was is finally over, settled by a
processing fees imposed by the well-established legal process,
card brands over an eight-year strengthened by "the which brought together
period. retailers and the card industry
relatively small number
In his memorandum and for a negotiated resolution,"
the EPC said. "After years
order, Gleeson found that the of opt-outs and absence of mediation, dozens of
settlement plan was both fair meetings, and millions of
and reasonable. The claim of objections from class pages of evidence, the parties
administrator will now begin members" to it. involved have willingly
distributing funds to some 8 agreed to settle their dispute."
million U.S. merchants from
two accounts - the $6.05 billion However, such was not the
Cash Settlement Fund and the verdict of the National Retail
estimated $1.2 billion Interchange Fund. Federation, the largest U.S. retailers' association. "We
are very disappointed that this deeply flawed settlement
For more details on the settlement, see "The $7.25 billion has been approved," said NRF Senior Vice President and
settlement proposal: What you need to know," The Green General Counsel Mallory Duncan.
Sheet, April 22, 2013, issue 13:04:02.
He added that the settlement "permanently ties the
Gleeson said only minor modifications would be made hands of thousands of businesses who wanted nothing
to the settlement and that a status conference regarding to do with this misguided case."
next steps would be held in his courtroom on Jan. 10,
2014. In addition, Duncan pointed out that "swipe fees cost
merchants and their customers an estimated $30 billion a
The settlement, which was initially reached in July year and have tripled over the past decade." He noted that
2013, resolves, for now, a legal battle over interchange the NRF is reviewing the ruling and "will take whatever
and card brand rules that began in 2005. As outlined by steps are necessary to protect the rights of merchants
Gleeson, in that time both Visa and MasterCard have and safeguard the pocketbooks of their customers."
gone public and the Durbin Amendment to the Dodd-
Frank Act (which regulated debit card interchange) was
implemented. Along the way, proponents and opponents Back to business
of the settlement routinely slung accusations at one
another. Final arguments for and against the settlement were
heard by the judge in a contentious Sept. 12, 2013, hearing.
10
