Judge Asks Why So Many Law Firms Seek Fees in Suits
The New York Sun
April 1, 2008
By Joseph Goldstein
A federal judge in Manhattan is expressing surprise at the multitude of lawyers who are seeking a chunk of a $336 million settlement with Mastercard and Visa, as well as member banks such as JPMorgan Chase and Citibank. The settlement, reached in 2006, came in lawsuits alleging that the companies had overcharged cardholders on purchases made abroad and had hidden the added fees. The card issuers were alleged to have colluded to fix an added fee of between 1% and 3% on foreign purchases.
Based on the number of claims expected, the majority of class members will receive $25. More than 30 law firms are asking for a total of about $86 million of the settlement, or just under 26%. The lawyers say they deserve the amount because it is difficult to make a case based on allegations of collusion, and because their lawsuits did not piggyback on any regulatory action taken by the government.
