Mastercard Wins UK Court Nod for $253M Deal to End $12B Class Action Claim

Mastercard Inc. won a London court’s approval for the £200 million ($253 million) agreed to pay to end a high-profile class action over the fees it charges, which was initially estimated to be worth more than £10 billion ($12.6 billion).

The Competition Appeal Tribunal approved the deal on Friday rejecting the litigation funder Innsworth Advisors Ltd.’s allegation that the settlement undervalued the claim. “The settlement is being approved subject to finalization” of the details, a judge said. A formal order will be made later.

The challenge by the funder followed a settlement in what was once the country’s largest class action claim over the amount Mastercard charged consumers and businesses to use its cards.

Spokespeople for Innsworth and the lead claimant Walter Merricks, who represented about 44 million consumers, didn’t immediately comment after the ruling. Mastercard’s spokesperson welcomed the tribunal’s decision.