A class action lawsuit brought by major corporations and trade associations against Visa, Inc., and Mastercard, Inc., charged that the companies’ fees to retailers were excessive. And after a $725 billion settlement, the plaintiffs are seeing that the defendants aren’t the only ones charging high fees.
The settlement includes a $1.2 billion temporary fee-reduction. With history as a guide, attorneys can make as much as $600 million, which is roughly 10 percent of the remaining settlement. This puts it on par with fees received by lawyers during Enron, WorldCom, and Tyco litigation according to an expert quoted in a Reuters report.
And yes, a new ‘swipe fee’ may be in order for consumers as a result of the settlement.
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