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A Georgia federal judge has granted preliminary approval to a $3.6 million settlement between Global Payments Inc. and investors who accused a subsidiary of deceptive practices. The Atlanta-based payment tech company faces claims that its subsidiary, Active Network LLC, misled consumers into joining a program with hidden fees.

Global Payments $3.6M Deal OK : Court Approval in Sight

U.S. District Judge Leigh Martin May's decision on Monday brings the case closer to resolution, though final approval is still pending. A hearing is set for Dec. 11, where class members can voice objections to the terms. Any written objections must be filed at least 21 days before the hearing, according to the judge's order.

If the deal is approved, it would resolve investor allegations that a significant portion of Active Network’s revenue came from misleading practices. The investors claim the subsidiary lured consumers into signing up for its "Active Advantage" discount membership program under the guise of a free trial, which automatically converted into a paid subscription unless canceled. This practice, according to the investors, led to "hundreds of millions of dollars — and thousands of customer complaints" over time.

Settlement Value vs. Potential Recovery

Despite the substantial complaints, the investors agreed to the $3.6 million settlement after an expert calculated that the maximum recoverable damages in the case could reach $97 million. This means the settlement represents about 3.7% of the potential damages.

Global Payments $3.6M Deal OK : Legal Fees and Costs

The legal team representing the investors, including attorneys from Pomerantz LLP, Evangelista Worley LLC, and Lowey Dannenberg PC, has indicated they will seek a fee of up to one-third of the settlement fund. Additionally, they plan to request up to $100,000 to cover litigation costs.

Legal Representation

The plaintiffs in the case are represented by Jeremy A. Lieberman and Jonathan Park of Pomerantz LLP, James M. Evangelista of Evangelista Worley LLC, and Vincent Briganti, Andrea Farah, and Alesandra Greco of Lowey Dannenberg PC. The defense is represented by Michael R. Smith, Benjamin Lee, Peter Starr, and Matthew Rosenthal of King & Spalding LLP.