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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:

• £100 million will be distributed to class members, with individual payouts ranging from £45 to £70 depending on claim volume.

• £45.5 million is secured as a minimum return for Innsworth.

• £54.4 million remains available for further cost coverage and Innsworth’s additional return on investment.

• Any unclaimed funds will be donated to the Access to Justice Foundation, which may receive up to £86 million if only 200,000 consumers come forward.

Justice Roth acknowledged the “disappointing” scale of the settlement compared to the original claim size but noted that Merricks faced “very substantial obstacles,” including challenges around causation and legal limitation. Final legal advice estimated Merricks' chance of success at only 40%, which the CAT considered “optimistic.”

The tribunal will appoint retired judge Andrew Gordon-Saker to independently assess the legal costs incurred, in a process modeled after the Australian class action framework. Willkie Farr & Gallagher (UK) LLP and Innsworth have been ordered to provide detailed billing records for review.

Merricks expressed pride in securing what he called “the largest settlement for a group of U.K. consumers through the English courts.” He also criticized Innsworth for attempting to block the settlement and initiating arbitration proceedings against him personally, an action he said could have led to his bankruptcy.

Mastercard agreed to provide £10 million to cover Merricks' legal fees in the dispute with Innsworth, a move which the CAT stated did not compromise the fairness of the settlement.

In closing, Merricks called on the Association of Litigation Funders to investigate Innsworth’s conduct and consider appropriate action.

The case is Walter Hugh Merricks CBE v. Mastercard Inc. and others, case number 1266/7/7/16 in the Competition Appeal Tribunal.