UK court blocks huge class action against Mastercard worth £14 billion
A huge potentially very damaging class action against Mastercard for £14 billion for allegedly charging people too much over a 16 year duration has been blocked by the courts this week.
It all happened in a CAT or “Competition Appeal Tribunal” which is a new court style that has been charged with overseeing the UK’s burgeoning class action law scheme. They specified that they would not be allowing the requisite collective proceedings order that the case needed to go to trial.
If it had been allowed to move forward, the lawsuit would have the biggest and the most complex in British legal history , whilst also testing the Consumer Rights act , which has introduced the USA originating class actions for breaching UK/EU law in 2015.
Mastercard, not surprisingly, was happy with this judgement and had said the claim was “completely unsuitable” to be launched under the collective action legislation.
The law firm Quinn Emanuel Urquhard and Sullivan originally launched the case on behalf of the plaintiffs which came after Mastercard lost a long running appeal against an 07 EU decision that had ruled it’s fees were anti competitive.
The case revolved around interchange fees, and alleged that these fees were being passed on to consumers in more expensive goods and services. The fees are used by such credit and debit card companies to cover the costs of operating the card services, innovation and also security.
I am a class action laywer based in the UK and working for a large law firm, which I cant mention for legal reasons, although they are a London firm!!
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