City, Date – In a landmark decision, Scan My Photos, a humble film scanning business, led by CEO Mitch Goldstone, has secured a historic $5.54 billion settlement in an 18-year-long court battle against financial giants Visa and Mastercard. The victory marks the largest private antitrust class-action settlement in the United States, providing relief to millions of businesses affected by allegedly excessive payment fees.
Background: A Long and Grueling Legal Journey
The legal saga began almost two decades ago when Mitch Goldstone, the lead plaintiff, initiated a legal battle against Visa and Mastercard, asserting that merchants endured exorbitant fees for accepting credit and debit card payments. The class-action lawsuit alleged that both companies, along with their member banks, violated antitrust laws.
Scope of the Victory: Millions of Businesses Eligible for Compensation
The impact of this groundbreaking settlement extends to millions of U.S. businesses that accepted Visa or Mastercard payments between January 1, 2004, and January 25, 2019, and did not opt-out previously. The settlement, officially termed the “payment card interchange fee settlement,” invites class members to review details and submit claims through a dedicated website, with claim forms being mailed to eligible businesses.
Legal Experts Weigh In
K. Craig Wildfang, from Robins Kaplan LLP, co-counsel on the litigation, described the settlement as a historic moment providing relief for U.S. merchants after years of alleged inflated fees. Alexandra Bernay, partner at Robbins Geller Rudman & Dowd LLP, expressed anticipation in assisting class members with the claims process and ensuring they receive the benefits promptly.
Court’s Ruling and Validation
The settlement received validation through a unanimous ruling by the Court of Appeals for the Second Circuit on March 15, 2023. The court upheld a district court order, solidifying the $5.54 billion settlement on behalf of U.S. merchants involved in the class action lawsuit.
Goldstone’s Triumph: A Long-Awaited Victory
For Mitch Goldstone, this victory is akin to Erin Brockovich’s iconic moment in the 2000 film. Goldstone’s perseverance against financial giants began when his own business faced the burden of excessive credit and debit card fees. His tireless efforts included a social media campaign, frequent trips to New York City and Washington D.C., and active participation in court proceedings.
Appeal to Affected Business Owners
Goldstone urges all affected business owners, regardless of size, to file a claim and reclaim what is rightfully theirs. Even businesses that have ceased operations may still be eligible for relief. The claim process has been designed to be accessible, allowing business owners to navigate it without the need for intermediaries.
Support for Small Businesses in Challenging Times
Highlighting the significance of the settlement in the current business landscape, Goldstone emphasizes that the relief extends support not only to larger enterprises but also provides crucial benefits to smaller businesses grappling with various challenges, including the pandemic, supply chain disruptions, labor shortages, and inflation.
In the wake of this historic settlement, the business community anticipates a shift in the dynamics of credit and debit card transactions, with businesses reclaiming what they believe is rightfully theirs.
