A group of prominent U.S. retailers headlined by Target and Macy’s have disengaged from the $7.2 billion Visa and MasterCard “swipe fee settlement,” and have started a separate lawsuit against the two payments giants, according to an NBC News report.
The new lawsuit comes just ahead of the May 28 deadline for merchants to decide whether to accept damages under the agreement and be bound to its terms, or to opt out of the settlement. The agreement contains a clause that could prevent retailers from suing Visa and MasterCard over swipe fees again in the future, which many retailers cite as a motivating factor in opting out of compensation.
NBC notes that even retailers who opt out will be bound by “other legal rulings if the settlement goes forward,” such as the changes to MasterCard and Visa’s swipe fee rules.
In addition to Target and Macy’s, Kohl’s, TJX and JC Penney are also named as plaintiffs in the case. Eighteen additional retailers, led by Walmart, opted out of the settlement on Tuesday but are not part of the new lawsuit.
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