Mastercard Settlement of £200 Million Approved by UK Court Despite Funder Discontent

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Court ruling emphasizes the complexities of collective redress and litigation funding in the UK / Reuters


A UK court has granted approval for a £200 million settlement between Mastercard and roughly 46 million consumers who claimed that the company charged excessive card transaction fees. This settlement, which comes without any admission of liability from Mastercard, is a stark reduction from the original £10 billion claim filed against the payments processor. Individual claimants are anticipated to receive approximately £2.27 each.

The settlement faced significant pushback from Innsworth Capital, a litigation funder that invested £45 million into the case. Innsworth contended that the settlement amount was inadequate and sought a larger portion of the allocated funds. However, the Competition Appeal Tribunal approved the agreement, asserting that it represented a reasonable resolution considering the case's complexities and the broader implications for collective redress in the UK legal system.

This legal battle illustrates the ongoing discussions in the UK regarding collective redress mechanisms and the role of litigation funding in such cases. The court's endorsement of the settlement, despite opposition from the funder, highlights the judiciary's authority in assessing the fairness and adequacy of such resolutions. The approval of this settlement is a critical indicator of how collective actions will be handled in the future, particularly in the burgeoning class action landscape within the UK.

Following the tribunal's decision, Mastercard expressed satisfaction with the outcome, emphasizing its commitment to delivering an exceptional payment experience and value to consumers and businesses alike. A spokesperson for Mastercard remarked, "We will continue to focus on providing consumers and businesses with what they expect from Mastercard – a great payments experience, strong value, and peace of mind."

Innsworth Capital's objections raised important questions about the evolving landscape of class actions in the UK. They argued that the settlement's approval could set a precedent that might affect future litigation funding and collective redress initiatives. The approval of this settlement not only addresses the claims of millions of consumers but also serves as a pivotal moment for the legal framework surrounding collective actions and litigation funding in the United Kingdom.

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