Class Action Lawsuits Against Numerous Banks

Class action lawsuits have been brought against Visa, Mastercard, and several banks that issue credit cards. The lawsuits are on behalf of all merchants in Canada who accept those credit cards. The lawsuits claim higher interchange fees paid by merchants to accept Visa and Mastercard credit cards, and other restrictions. However, the allegations were denied and seven settlements with some of the issuing banks, Visa, and MasterCard have been approved. Currently, there’s a proposed settlement for the benefit of the settlement class with the five remaining issuing banks, including Royal Bank of Canada, the Toronto-Dominion Bank, the Canadian Imperial Bank of Commerce, Bank of Montreal, and the Bank of Nova Scotia for $120 million. In exchange, settlement class members give the settling defendants and related entities a full release of claims arising from the alleged conduct at issue. If the proposed settlement is approved by the courts, the net settlement funds generated in the proposed settlement, and in the previous approved settlements, will be distributed to settlement class members in accordance with a distribution plan, also subject to approval by the courts.