Mastercard Reaches Settlement Agreement in London Lawsuit

LONDON (Reuters) – Mastercard (NYSE:MA) has reached an agreement in principle to settle a collective lawsuit in London brought on behalf of British consumers over card fees, announced on Tuesday.

The global payments processor faced a lawsuit led by consumer champion Walter Merricks on behalf of about 46 million adults in the United Kingdom.

This case became the first mass consumer action approved in the UK in 2021, following a nearly five-year process from the Competition Appeal Tribunal (CAT) to the UK Supreme Court and back.

During the latest proceedings at the CAT on Tuesday, it was disclosed that Mastercard and Merricks, representing the claimant class, had reached a settlement agreement pending tribunal approval.

The CAT indicated in its recent judgment that the total claim value was estimated by claimants' lawyers to be roughly 10 billion pounds ($12.7 billion). However, sources indicated the settlement amount is around 200 million pounds.

Mastercard stated, "We are pleased to have reached an agreement in principle to put this case behind us."

Merricks expressed satisfaction with the settlement: "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."