Walmart challenges mandatory card-fee settlement class

Walmart, Circle K Stores and other large retailers are challenging a proposed settlement over credit-card fees, arguing that merchants cannot be forced into a class they are barred from leaving. Their filings say that arrangement violates constitutional due-process protections and may improperly take away private legal claims.

The dispute comes from a lawsuit that has lasted 21 years and involves millions of merchants seeking relief from fees charged when customers pay by credit card. The case is before U.S. District Judge Brian Cogan in Brooklyn. Walmart and the National Association of Convenience Stores want merchants to be allowed to exit the class, or want the class dissolved because it includes businesses with widely different interests. Hundreds of merchants have also asked Cogan to reject final approval. Two earlier agreements were rejected, most recently in June 2024.

The court granted preliminary approval in June. Walmart raised its constitutional objections during an April hearing and expanded them in a 299-page filing dated Sept. 14. Settlement lawyers have until Oct. 14 to answer the objections.