The Competition Appeal Tribunal (CAT) will decide whether to approve the settlement, which allows Mastercard customers to recover £40-£50 each, at a short hearing either before the end of this month or in early 2025.
Merricks was acting as class representative on behalf of 46 million customers in a claim previously valued at more than £16bn against Mastercard over multilateral interchange fees. He said he believes the settlement ‘will deliver meaningful compensation to class members’.
However, funder Innsworth Capital said last week it will challenge the settlement, which it says was struck without its agreement and is ‘both too low and premature’. In a statement, it accused Merricks and his solicitor, Willkie Farr & Gallagher partner Boris Bronfentrinker, of having rushed to settle for a reported £200m.
Bronfentrinker, representing Merricks, retorted that Innsworth’s accusation was ‘frankly absurd’.
‘To the contrary, based on the actual evidence that has now come to light and that was not previously publicly available, the realistic value of the claim has now become much clearer,’ he said.
‘This will all be set out in the application and supporting evidence that will be filed with the tribunal.’ Bronfentrinker accused Innsworth of wanting Merricks to ‘continue with risky litigation that could result in UK consumers recovering significantly less, or even nothing—simply because Innsworth is unhappy that the settlement that has now been agreed may not allow it to recover the hundreds of millions it considers it should receive.’
Since its launch in 2016, the mammoth claim has involved numerous hearings before the CAT, multiple appeals before the Court of Appeal, and a visit to the Supreme Court. It was the first to be granted an ‘opt-out’ collective proceedings order, in 2021.
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