Case Number: No. 05-cv-07116

Practice Area: Antitrust

Case Status: Settled

Settlement Amount: Removal of Arbitration Provisions

Court: United States District Court for the Southern District of New York

Berger Montague served as lead counsel for the cardholder classes and obtained settlements with four of the nation’s largest credit card companies, JPMorgan Chase, Bank of America, Capital One and HSBC. The plaintiffs alleged that six major credit card banks and one arbitration provide unlawfully colluded to require cardholders to arbitrate disputes, including debt collection disputes, and to preclude cardholders from participating in any class actions.

The groundbreaking settlement removed arbitration clauses nationwide from the so-called “cardholder agreements” for over 100 million credit card holders. This victory for consumers and small businesses came after nearly five years of hard-fought litigation, including obtaining a decision by the United States Court of Appeals for the Second Circuit, reversing the district court’s order dismissing the case, on claims that the defendant banks unlawfully acted in concert to require cardholders to arbitrate disputes. Each of the settling banks agreed to drop their arbitration clauses and class action bans for a number of years which aided consumers and small businesses in their ability to resist unfair and abusive credit card practices.

If you or your company has been harmed by anticompetitive conduct or any conduct that you believe violates the antitrust laws, please contact Berger Montague.

About Berger Montague

Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.

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