The latest development in a lawsuit against Visa, Mastercard and other major credit card issuers regarding their credit card fees involves Staples. In May of 2024, we reported that the Court of Appeals for the Second Circuit approved a $5.5 billion settlement in the case of In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, otherwise known as the “Swipeopoly” case. However, this didn’t end the matter. Recently, Staples pulled out of the Swipeopoly settlement and announced it has reached a separate agreement with Visa and Mastercard.

Swipeopoly Case History

The action was originally brought in 2009 by a class of merchant plaintiffs against all of the major credit card issuers alleging that the interchange or swipe fees charged by the card issuers to complete a transaction constituted a conspiracy to charge artificially high fixed fees. The settlement was approved in March 2023. At that time, businesses that accepted Visa or Mastercard between January 1, 2004 and January 25, 2019 were given the opportunity to opt in or out of the settlement. Plaintiffs had until August 30, 2024 to file a claim to receive a portion of the settlement funds as a part of the plaintiff class. 

Opposition to the Settlement

The settlement faced fierce opposition from many of the plaintiffs including the likes of Target, Wal-Mart, Home Depot, Neiman Marcus, Saks and over 1,200 other retailers. Since then, some retailers like Walgreens have reached separate settlements with Visa and Mastercard. Most recently, Staples joined the ranks of Walgreens as it also reached a separate settlement agreement and agreed to drop its claims against Visa and Mastercard. 

This marks a significant development in the decades old case. While the terms of the settlement have not been made public, it is evident that increasing litigation costs and growing uncertainty in the outcome of continuing litigation played a major role in Staples’ decision to settle.

Impact on Businesses

The deadline for any potential claimant to file a new claim for damages and receive a cut of the $5.5 billion settlement has passed. However, existing claims are still being processed, and Staples’ settlement can potentially play a role in future opt-in periods. This settlement may also lead other high-profile plaintiffs to settle their claims.

If you have filed a claim and have questions, contact one of our attorneys.