The Competition Appeal Tribunal (CAT) has officially approved a £200 million settlement between Mastercard and class representative Walter Merricks, bringing one of the largest UK consumer collective actions to a close. As part of the judgment, Innsworth Capital, the litigation funder backing the case, is set to receive approximately £68 million in return for its financial support.
The final approval was delivered in an 80-page ruling by Justice Peter Roth, following an oral decision in February. Despite objections from Innsworth, who argued the settlement undervalued the claim and sought at least £179 million, the tribunal concluded that a 1.5x return on Innsworth’s estimated £45.5 million investment was appropriate.
The case, brought nearly nine years ago by Merricks, alleged that Mastercard unlawfully charged interchange fees to retailers from 1992 to 2008, which were then passed on to consumers through inflated prices. Representing approximately 44 million UK consumers, the claim was initially valued at up to £14 billion.
Under the approved settlement:
