Mastercard’s £200 million settlement of a class action lawsuit brought on behalf of British consumers has received approval from the Competition Appeal Tribunal.
In December, Mastercard reached an agreement with Walter Merricks, the lead plaintiff in the case, to resolve the lengthy litigation concerning credit card fees affecting tens of millions of consumers in the UK.
However, the litigation funder Innsworth Advisors disputed the settlement, arguing that it undervalued the claim, which was initially estimated to be worth approximately £10 billion.
The Competition Appeal Tribunal has now endorsed the settlement, describing it as “just and reasonable,” albeit “very disappointing” in comparison to the original claim.
Merricks, who previously headed the UK Financial Ombudsman Service, initiated the lawsuit in 2016, alleging that Mastercard overcharged British consumers for credit card interchange fees.
In December, he expressed his satisfaction with the settlement, stating, “I am very pleased that after nearly nine years of litigation with Mastercard, I have agreed to a settlement that I believe will deliver meaningful compensation to class members who choose to come forward to participate in the distribution of the damages.”