Court-approved notice program begins to notify all merchants that accept American Express cards of a class action settlement.

BROOKLYN, New York, March 6, 2014 /PRNewswire/ -- A notification program is underway, as ordered by Judge Nicholas G. Garaufis of the United States District Court for the Eastern District of New York, to inform merchants of a nationwide class action settlement. The cases resolved by the settlement are known as In re American Express Anti-Steering Rules Antitrust Litigation (II), No. 11-MD-2221 and Marcus Corp. v American Express Co. et al., 13-CV-07355. These cases allege that certain rules applicable to merchants that accept American Express cards violate antitrust laws and resulted in merchants paying excessive fees. The Court has not decided which side is right because the parties agreed to settle.

The settlement applies to a class comprised of all merchants that accept American Express cards at any location in the United States (including at a physical merchant location, online or via a mobile application) as of or after February 12, 2014, onward.

Notices will be mailed to all merchants that currently accept American Express cards. Additionally, notices will appear in a wide variety of merchant-related publications in the United States and its recognized territories. The notices will direct readers to the official case website at www.AmexMerchantSettlement.com, where detailed information about the settlement, including the full copy of both the court-approved, long-form notice ("Notice") and Class Settlement Agreement, can be viewed and downloaded.

The settlement will require American Express to change its rules to allow merchants who accept American Express cards to charge customers an extra fee or "surcharge" if they pay with an American Express credit or charge card under certain conditions including that any such surcharge apply to all credit and charge card transactions. The specific rule changes and terms of the settlement are explained in detail in the Notice and Class Settlement Agreement, available at the case website (www.AmexMerchantSettlement.com).

Merchants do not need to file a claim to receive the benefits of the rule changes provided for by the settlement. If merchants want to seek monetary damages related to American Express's existing merchant rules, they can pursue those claims consistent with the dispute resolution provisions contained in their card acceptance agreement. No money will be distributed to the class.

Objections to the settlement are due by June 6, 2014. The Notice available at the case website explains how to object. Regardless of whether a merchant objects, if the settlement is finally approved, the merchant will be bound by the Court's final judgment and the releases explained in the Class Settlement Agreement, which is available on the case website.

The Court will hold a hearing on September 17, 2014 to consider whether to approve the settlement and the request by the attorneys for the class for attorneys' fees, expenses, and service awards up to a maximum total of $75 million. The Court has appointed Friedman Law Group, LLP, Reinhardt, Wendorf & Blanchfield, and Patton Boggs LLP to represent the class.

SOURCE U.S. District Court, Eastern District of New York