Credit Card Issuers Win Court Review in Retailers’ Suit

Visa USA Inc. and MasterCard International Inc., targets of an antitrust suit by some of the nation’s largest retailers, have convinced an appeals panel to review a lower court ruling certifying the case as a class-action, MasterCard and a lawyer for the plaintiffs said Wednesday.

The lawsuit alleges that MasterCard and Visa USA, a unit of San Francisco-based Visa International Inc., abuse their monopoly power in the credit card industry as a tactic to achieve dominance in the debit card business. The suit, which reportedly seeks damages of up to $50 billion, was brought by Wal-Mart Stores Inc., and a dozen other large and small retailers.

In February, a federal judge in Brooklyn, N.Y., ruled that the plaintiffs would adequately represent the interests of 4 million U.S. retailers. U.S. District Judge John Gleeson also urged the U.S. 2nd Circuit Court of Appeals to hear the companies’ appeal of his ruling.

The appeals court Wednesday heeded the recommendation.

Attorney Lloyd Constantine said a special procedure created by the U.S. Supreme Court in 1998 permits such mid-litigation appeals. He said the trial was on schedule to begin in November.

A spokesman for Visa said the company was “very encouraged” by the action. “While this case is far from over, this is a good early victory,” the spokesman said.