A UK tribunal has officially approved Mastercard’s settlement of a significant lawsuit, despite strong opposition from the firm that financed the legal action. On Friday 24th November, the competition tribunal approved a settlement which allows Mastercard to pay to end a long-running court case about high card fees. This lawsuit filed on behalf of British consumers settled for £200 million ($253 million).
The case has been continuing for some years and Mastercard announced the settlement in December 2024, seeking to end it. The case was about Mastercard’s charges allegedly hitting millions of people in the pocket. By settling this case, the company is taking an important step toward resolving one of the largest class actions in the history of the UK.
Mastercard Defends Its Settlement Terms
Following the tribunal’s approval, Mastercard welcomed the decision and reiterated its commitment to consumers and businesses. A spokesperson for the global payments firm mentioned that Mastercard remains committed to delivering a smooth, secure, and valuable payment experience for its customers. Through this settlement the company is able to move on and continue equipping customers with innovative financial solutions.
Even though Mastercard is happy about the resolution, some people are not, one such reason is that many feel that the settlement is far too low than what the suit expects. Critics argue that the amount could have been far greater should the case have moved ahead further on. However, since the ruling of the tribunal, it stands as a legally binding agreement.
Innsworth Capital Challenges the Settlement’s Fairness
The legal funding firm Innsworth Capital, which financed the lawsuit, strongly opposed the settlement and had urged the tribunal to reject the agreement. Innsworth first estimated the value of the claim at £10 billion and argued at court that what Mastercard was offering was far less than what consumers deserved. The settlement also raised wider questions about the fairness and transparency of class actions in the UK, the firm argued.
Innsworth previously stated that the case raises big worries about what happens next with class action lawsuits in the UK. The firm also suggested that if such settlements became normal, it would mean consumers would not get proper settlement in such cases. Despite all this, tribunal agreed with Mastercard and probed the agreement closing the case. Innsworth hasn’t responded to the ruling or stated if it intends to do anything further.
Implications for the UK’s Class Action System
The approval of this settlement serves as a significant moment for the UK’s evolving class action landscape. Legal experts say the ruling sets an important precedent that could impact litigation funding as well as settlement funding. Some feel that this ruling can make firms settle for lower amounts in case of class action since the application might get approved by the tribunal even if there is an opposition.
For Mastercard, this ruling gives a feeling a closure after years of card fees litigations. Now the firm is trying to improve its payment system and gain consumer confidence. Though the tribunal’s ruling may have closed this case, the wider conversation about whether British class actions are a fair deal for claimants is likely to go on.
