TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Retailers nix settlement, sue credit card firms

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Thursday, May 23, 2013, 9:15 p.m.
 

NEW YORK — Some of the country's largest retailers, including Target Corp. and Macy's Inc., on Thursday filed a lawsuit against MasterCard and Visa, rejecting a settlement reached last year over alleged fee-fixing.

A larger group of 19 trade associations and retail companies originally filed suit against the card processing companies in 2005, claiming they conspired to fix the fees they charge stores for handling payments made with credit cards.

A $7.2 billion settlement was reached in July, but some of the retailers rejected it, partially because it includes a provision barring retailers from filing future lawsuits over swipe fees. Some retailers have argued that the settlement amount was far less than what they deserved and might have won at trial.

Earlier this week, the National Retail Federation, which represents more than 9,000 retailers across the country, urged its members to reject the settlement.

The retailers involved in the new lawsuit, filed in U.S. District Court in Manhattan, also include TJX Cos., Office Depot Inc., Kohl's Corp., Abercrombie & Fitch Co. and several others.

Visa spokesman Will Valentine declined to comment, while MasterCard spokesman Jim Issokson would say only that his company remains confident that the settlement will ultimately be approved.

Trish Wexler, a spokeswoman for the Electronic Payments Coalition, which counts the companies among its members, said the lawsuit didn't come as a surprise and was the next natural step for retailers opting out of the settlement.

Other retailers have until Tuesday to opt out of the agreement so they can pursue their own legal action.

Visa shares fell $2.04 to $178.10 on Thursday; MasterCard shares fell $6.98 to $569.73.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. 153-year-old Venango well pumps out oil, history
  2. Small retailers at intersection of social networks, foot traffic
  3. CEOs in 10 big mergers to get $430M: Equilar study
  4. Woman on dating site looks too good to be true: How to vet that pic
  5. Highmark and UPMC feud over canceled physician contracts
  6. Iron ore price decline hurts U.S. Steel’s cost advantage over rivals
  7. U.S. Steel reorganizes operating units
  8. Business Council for Peace program works to export profits, peace
  9. In ‘StockCity,’ real investing like game
  10. Ford: Aluminum-body truck to get 26 mpg
  11. Variable-rate electricity contracts in Pennsylvania can cost customers plenty
Subscribe today! Click here for our subscription offers.