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Opt-outs of $7.2 bln credit card fee settlement face risks

| Reuters

Over the last few weeks, some of the largest retailers in the United States have split off from a proposed $7.2 billion class action settlement over an alleged conspiracy to inflate credit card fees, hoping they can do better on their own. But their path is not without significant risks.

Craig Wildfang of Robins, Kaplan, Miller & Ciresi, who has served as one of the lead lawyers for the class, said that merchants striking out on their own may not appreciate the novel nature of the claims made in the class action.

“I think they have greatly underestimated the risk of the case and probably overestimated their ability in the short and medium term of getting greater economic value in a settlement,” Wildfang said.

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