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UK Court Approves Settlement in Class Action Targeting Mastercard
MAMastercard(MA) PYMNTS.com·2025-02-21 20:00

Core Points - A London court approved a settlement of 200 million pounds (approximately 253million)inaclassactionlawsuitagainstMastercardregardingitsswipefees,despitechallengesfromthelitigationfunderInnsworthAdvisors[1][2][5]−Thelawsuit,initiatedin2016,accusedMastercardofoverchargingnearly60millionBritishresidentsthroughexcessiveinterchangefeesovera16−yearperiod[3][4]−Thesettlementisseenasacompromiseafternearlynineyearsoflitigation,withMastercardexpressingsatisfactioninreachinganagreementtoresolvethecase[4]SettlementDetails−Thesettlementamountof200millionpoundswassignificantlylowerthantheoriginalestimatedclaimof10billionpounds(approximately253 million) in a class action lawsuit against Mastercard regarding its swipe fees, despite challenges from the litigation funder Innsworth Advisors [1][2][5] - The lawsuit, initiated in 2016, accused Mastercard of overcharging nearly 60 million British residents through excessive interchange fees over a 16-year period [3][4] - The settlement is seen as a compromise after nearly nine years of litigation, with Mastercard expressing satisfaction in reaching an agreement to resolve the case [4] Settlement Details - The settlement amount of 200 million pounds was significantly lower than the original estimated claim of 10 billion pounds (approximately 12.6 billion) [1][3] - The judge indicated that the settlement is subject to finalization of details, with a formal order to follow [2] - Innsworth Capital, the litigation funder, argued that the settlement was inadequate given their investment of over 45 million pounds (about $57 million) in the legal battle [5] Implications - The case raised concerns regarding the future of class action funding in the United Kingdom, particularly in light of the criticisms directed at the settlement [4][5] - Consumer advocate Walter Merricks, who led the lawsuit, expressed satisfaction with the settlement, believing it would provide meaningful compensation to affected class members [4]