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Table of Contents

Lead Story

Cooperation spurs progress in 2012

News

Industry Update

Experts doubt SAFE WEB Act slows cyber crime

CFPB seeks to refine money transfer rules

Retailers appeal preliminary approval of settlement

Technology spurs cashless adoption

Features

AmEx, Wal-Mart, partner on prepaid debit card

Going postal with financial services

ISOMetrics:
The prognosis for payments - 2013

Selling Prepaid

Prepaid in brief

Blumenthal bill targets gift card fees, expiration dates

First ATM-dispensed, multibrand gift card program in pilot

Views

The confusing state of mobile

Patti Murphy
ProScribes Inc.

Education

Street SmartsSM:
Five predictions for 2013

Jeff Fortney
Clearent LLC

Making sense of 'sensemaking'

Dale S. Laszig
Castles Technology Co. Ltd.

No reservations about mPOS at eateries

Rick Berry
ABC Mobile Pay Inc.

Crunch time for holiday shopping data

Nicholas Cucci
Network Merchants Inc.

Subtle but crucial factors in portfolio sales

Adam Atlas
Attorney at Law

Empower your email

Brian Jones
Harbortouch

Company Profile

American Microloan LLC

New Products

POS with a higher purpose

HioPOS Plus
Regal Payment Systems LLC

More leads in less time

Press 1 Campaign
Live Reps Call Center

Inspiration

Change be with you in 2013

Departments

10 Years ago in The Green Sheet

December 23, 2002 Issue 02:12:02

Forum

Resource Guide

Datebook

Miscellaneous

2013 events calendar

A Bigger Thing

The Green Sheet Online Edition

December 24, 2012  •  Issue 12:12:02

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Retailers appeal preliminary approval of settlement

The Home Depot U.S.A. Inc. and a coalition of dissenting plaintiff retailers and retail associations served notice on Nov. 27, 2012, to the U.S. Eastern District of New York they will appeal the preliminary approval of a proposed $7.2 billion settlement of their class action antitrust suit. The merchants allege Visa Inc. and MasterCard Worldwide interchange fees violate U.S. antitrust law.

In his preliminary approval order, U.S. District Court Judge John Gleeson scheduled the final approval hearing for Sept. 12, 2013. He also issued an injunction prohibiting any member of the class from challenging the settlement agreement pending its final approval.

Retailers claim due process violated

The settlement was negotiated with the card companies by attorneys appointed by the court to represent the more than 7 million merchants in the plaintiff class. Dissenting retailers object to the settlement because it forbids them from filing related claims of anticompetitive interchange practices against MasterCard and Visa in the future.

In a request for a stay of the preliminary approval order pending appeal to the Second Circuit Court of Appeals, the objecting merchants told the district court the future claims release deprives merchants of their due process rights. The retailers specifically objected to the order allowing them to opt out of the class so far as past damages are concerned but preventing them from bringing similar antitrust claims in the future.

"Given that merchants likely will be exercising their opt-out rights for claims concerning ongoing conduct - including, most importantly, the continued fixing of interchange - providing opt-out rights only for past damages, without the ability to enjoin and obtain damages for ongoing conduct, substantially impairs the value of opt-out rights for past damages," the objecting merchants stated in their stay request. "This exacerbates the already serious due process issues raised by this settlement."

Pro-settlement retailers, card companies respond

Attorneys for Visa and MasterCard, along with the attorneys who negotiated the settlement on behalf of the merchants, stated that refusing the stay would not harm the objecting retailers, but granting a stay would irreparably hurt retailers who support the settlement because, among other things, the retailers stand to lose the benefit of the settlement's proposed eight-month interchange reduction, worth an estimated $1.2 billion, which is to begin in July 2013.

Robert Vizas, an attorney representing the card companies, added, "Complex cases could not be settled if the parties and the settlement were at risk for collateral attacks and disruptive litigation during the approval process."

For additional news stories, please visit www.greensheet.com and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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