Visa, MasterCard Lose Class-Action Appeal
Visa USA and MasterCard International lost a federal court appeal to limit a suit accusing them of trying to extend their credit card monopoly to debit cards.
The U.S. 2nd Circuit Court of Appeals permitted class-action status for the case, setting the stage for more than 4 million merchants to seek damages from the credit card giants. Such retailers as Wal-Mart Stores and Sears Roebuck are among companies that have sued.
The credit card companies said class certification might expose them to ruinous claims of $100 billion, and the large number of plaintiffs makes the case unmanageable. Judge Dennis G. Jacobs, in a dissent, said class status is a “brutally coercive” means of forcing a settlement.
Lloyd Constantine, a lawyer for the retailers, welcomed the ruling. Without class certification, he said, the lawsuit would have represented retailers who account for about 10% of all retail sales in the U.S. instead of 100%.
The plaintiffs also include Circuit City Stores and Safeway, as well as three trade associations and a group of smaller retailers.
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