NEW YORK (AP) — An appeals court has rejected a $7.25 billion settlement between merchants and Visa Inc. and MasterCard Inc. over credit card transaction fees.
The 2nd U.S. Circuit Court of Appeals ruled Thursday. The settlement came after merchants and trade groups sued the companies in 2005, saying they conspired to fix fees charged to stores for handling credit card payments.
The settlement made on behalf of approximately 12 million merchants was approved by a Brooklyn judge in December 2013.
A number of the nation's largest retailers, including Target Corp. and Macy's Inc., rejected the settlement. The National Retail Federation, the world's largest retail trade association, had called it "deeply flawed."
The appeals court said plaintiffs were inadequately represented and had no opportunity to opt out of the deal.