In a highly anticipated ruling issued on Friday, Eastern District Judge John Gleeson (See Profile) granted final approval to a $5.7 billion class action settlement that would resolve claims by merchants that Visa Inc. and MasterCard Inc. improperly fixed so-called interchange fees—the fees retailers are charged every time a customer pays with a credit card. Gleeson brushed aside unusually strident objections from class members like Wal-Mart Stores Inc. and Target Corp., writing that they engaged in “needless hyperbole” and “feigned hysteria.”
The deal had initially called for a $6 billion cash payment by Visa and MasterCard, plus a temporary reduction in fees valued at $1.2 billion. Opt-outs by a number of merchants shrunk the cash pool to roughly $4.5 billion, which will be distributed to a nationwide class of about 12 million merchants. The credit card companies also agreed to injunctive relief. The deal is the largest antitrust class action settlement in U.S. history.
