Bloomberg Businessweek reports that Visa Inc. has filed a preemptive lawsuit against Walmart in federal court, looking to prevent the retailer from suing it for price-fixing via its merchant swipe fees.
According to the story, "Visa, MasterCard and many of the country’s largest banks are seeking a Brooklyn federal judge’s final approval for a $7.25 billion settlement that would end an eight-year legal battle on behalf of millions of retailers over allegations that the card companies illegally fixed the fees. Retail trade associations and dozens of large retailers have objected to the settlement, claiming its terms are unfair, and thousands have dropped out ... Merchants that dropped out of the settlement have an option to pursue their own lawsuits over the fees. Visa said in its complaint that Wal-Mart 'has made plain' that it will file a new lawsuit."
Walmart says it is still determining whether to file a new suit against MasterCard and Visa.
According to the story, "Visa, MasterCard and many of the country’s largest banks are seeking a Brooklyn federal judge’s final approval for a $7.25 billion settlement that would end an eight-year legal battle on behalf of millions of retailers over allegations that the card companies illegally fixed the fees. Retail trade associations and dozens of large retailers have objected to the settlement, claiming its terms are unfair, and thousands have dropped out ... Merchants that dropped out of the settlement have an option to pursue their own lawsuits over the fees. Visa said in its complaint that Wal-Mart 'has made plain' that it will file a new lawsuit."
Walmart says it is still determining whether to file a new suit against MasterCard and Visa.
- KC's View:
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When they add up all the legal fees spent on this case, I'd be willing to bet that they'll amount to what could've been pretty substantial savings on swipe fees ... if only all these companies had been focused on the customer and not their own bottom lines.
